vania-janet/multiturn-rag-retrieval-data huggingface dataset:
Most countries tax income in its various ways, but not moving money. If this is a movement of already owned money, it is not tax-relevant. If it is a payment for services done, it is income, and it is the recipient's duty to pay taxes on it. Note that transferring large amounts of money (10k+) between countries can trigger a review, which - worst case - results in questions where it came from. The point of that is solely to verify it was legally earned money (not drug money or such). There is nothing to worry about if the money was legally earned.
There is no maximum. The only stipulation other than contribution limits is that you must take withdrawals at age 70 1/2.
"Both are saying essentially the same thing.  The Forbes articles says ""as much as 20% [...] up to a maximum of $50,000"".  This means the same as what the IRS page when it says the lesser of a percentage of your income or a total of $53,000.  In other words, the $53k is a cap: you can contribute a percentage of your earnings, but you can never contribute more than $53k, even if you make so much money that 20% of your earnings would be more than that. (The difference between 20% and 25% in the two sources appears to reflect a difference in contribution limits depending on whether you are making contributions for employees, or for yourself as a self-employed individual; see Publication 560.  The difference between $50k and $53k is due to the two pages being written in different years; the limits increase each year.)"
As much as you want. There's no tax on gifts you receive. Gift tax is on the donor, i.e.: the person giving the gift. The $100K limit is for reporting. Gifts of $100K or more per year from foreign sources must be disclosed on form 3520 attached to your tax return. But there's no tax. Read more here.
You can contribute to both but the total contribution is capped: More than one plan. If you contribute to a defined   contribution plan (defined in chapter 4),   annual additions to an account are limited to the   lesser of $53,000 or 100% of the participant's   compensation. When you figure this limit, you   must add your contributions to all defined contribution   plans maintained by you. Because a   SEP is considered a defined contribution plan   for this limit, your contributions to a SEP must   be added to your contributions to other defined   contribution plans you maintain. Source: https://www.irs.gov/pub/irs-pdf/p560.pdf on page 6.
Maximum FSA contribution amounts are set by the IRS.  For tax year 2015 you are allowed to place no more than $2,550 (and same maximum for 2016) in an FSA account, tax-free.   Your employer's plan year is not relevant to the IRS for this purpose. It's important to note that one interesting benefit to FSA accounts is the full amount of your annual contribution is available to you on the first day of the plan year; it is not a money-in money-out plan.
So I learned that your employer CAN force you to make employee contributions. However, this source seems to think that the mandatory employee contributions do not count against the 402(g) limit of $18,000.
Congratulations on your raise! Is my employer allowed to impose their own limit on my contributions   that's different from the IRS limit? No. Is it something they can limit at will, or are they required to allow   me to contribute up to the IRS limit? The employer cannot limit you, you can contribute up to the IRS limit. Your mistake is in thinking that the IRS limit is 17K for everyone. That is not so. You're affected by the HCE rules (Highly Compensated Employees). These rules define certain employees as HCE (if their salary is significantly higher than that of the rest of the employees), and limit the ability of the HCE's to deposit money into 401k, based on the deposits made by the rest of the employees. Basically it means that while the overall maximum is indeed 17K, your personal (and other HCE's in your company) is lowered down because those who are not HCE's in the company don't deposit to 401k enough. You can read more details and technical explanation about the HCE rules in this article and in this blog post.
The maximum you can contribute to both the 403(b) and 401(k) is $18,000. Take the amount you already contributed and subtract it from $18,000. That's how much you have left to contribute before maxing out.
If you have previously made a contribution during that tax year, you can pull it out and re-add it as often as you need until the deadline for that tax year (April 15 of the following year.) This assumes your gross income isn't high enough to exclude you from eligibility for new contributions--in 2017 the phase-out starts at $118,000 and it is completely phased out at $133,000. Within 60 days of distribution, you can re-contribute up to that amount, but you are only allowed one such 60 day rollover per year.
When considering charitable contributions it is entirely valid to consider the CEO's salary, but also consider the potential value add. For example, if that CEO generates a significantly more effective ratio of utilizing donated $ then it may justify the salary. In some scenarios it is fair to say that $450,000 would be a fair and adequate salary for a CEO running a large scale non-profit. Is this the case for every non-profit? Probably not. It should often be thought of as a function of total revenue and effectiveness of the $ donated. Company | 2013 Revenue | 2013 CEO Salary | Ratio ---|----|----|-----| Cummins | $6.3B | $9.4M | .15% EMC Corp | $6.2B | $32.3M | .52% Northeast Utilities | $6.1B | $1.7M | .03% Agilent Technologies | $6.1B | $10.2M | .17% *The Y (YMCA)* | *$6.2B* | *$.45M* | *.007%* Source(s): http://www.thenonprofittimes.com/wp-content/uploads/2013/11/11-1-13_Top100.pdf http://www.salary.com/ http://www.grossing.com/fortune500.htm"
"This is a very vague question and could not be fairly answered without knowing additional details, some examples would be: * What is the total revenue of the non-profit? * What are the total expenses of the non-profit? * What is the effectiveness rate to the ""cause"" of each $1 donated? Non-profit organizations and charities have grown to large scale business operations that are focused on delivering value to their determined cause. The Top 5 largest charities each had total revenues over $3.3 billion in 2012. This included United Way, Goodwill, The Y, and the Salvation Army with the largest being the Y at over $6.2 billion in annual revenue. All of these non-profits bring in enough revenue to be in the Fortune 500 (The 500th company on the list is Newmont Mining Corp at $3.2 billion in revenue). When you consider the scale of these operations I think you need to acquire an experienced CEO that has a career history of leading large and many times multi-national organization. These CEOs command high salaries because of their talent and expertise. I believe when they are passionate about a cause they're willing to take a discount, but you have to understand the term discount proportionately. I made a quick table below just to provide some context and show reference points of several Fortune 500 companies in comparison to The Y, the largest non-profit in total revenue. You can quickly see that a salary of $450,000 for an organization of this size would be a significant discount in comparison to the CEO salaries of comparably sized organization in the for profit world. When considering charitable contributions it is entirely valid to consider the CEO's salary, but also consider the potential value add. For example, if that CEO generates a significantly more effective ratio of utilizing donated $ then it may justify the salary. In some scenarios it is fair to say that $450,000 would be a fair and adequate salary for a CEO running a large scale non-profit. Is this the case for every non-profit? Probably not. It should often be thought of as a function of total revenue and effectiveness of the $ donated.
I would hire an accountant to help set this up, given the sums of money involved.  $53,000 would be the minimum amount of compensation needed to maximize the 401k. The total limit of contributions is the lesser of: 100% of the participant's compensation, or $53,000 ($59,000 including catch-up contributions) for 2015 and 2016. and they don't count contributions as compensation Your employer's contributions to a qualified retirement plan for you   are not included in income at the time contributed. (Your employer can   tell  you  whether  your  retirement  plan  is  qualified.) On the bright side, employer contributions aren't subject to FICA withholdings.
You're correct about the 401(k). Your employer's contributions don't count toward the $18k limit. You're incorrect about the IRAs though. You can contribute a maximum of $5500 total across IRA and Roth IRA, not $5500 to each. There are also limits once you reach higher levels of income. from IRS.gov: Retirement Topics - IRA Contribution Limits: For 2015, 2016, and 2017, your total contributions to all of your traditional and Roth IRAs cannot be more than:
"Under current US tax code, you can receive $14K from an unlimited number of people with no tax consequence to them. Yes, the burden is on the giver.  There's an exception to most rules. If I gift you a large sum and don't fill out the required paperwork, paying the tax due, the IRS can go after the recipient for their cut. ""Follow the money"" is still going to be applied.  Even if over $14K, a tax isn't always due. Form 709 is required, and will allow a credit against one's lifetime gifting, currently $5.34M. In effect, the current limits mean that 99%+ of us will never worry about this limit, just file the paperwork.  Last, the 529 College Savings accounts permit a 5 year look ahead, i.e. a parent can deposit $70K to jump start her child's account. Then no gift for next 4 years."
Traditional and Roth 401k share a contribution limit of $16.5k. This means you could actually contribute to both if you wished to (say, if you weren't 100% on how taxes will change come retirement time), but the combined contributions for the year cannot exceed that limit.
I see two ways you can handle this. Use the gifts for the purpose of creating more free software.  This is fundraising, and your cause is writing free software.  The language is a little tricky from the PayPal Donate button (emphasis mine): This button is intended for fundraising. If you are not raising money   for a cause, please choose another option. Nonprofits must verify   their status to withdraw donations they receive. Users that are not   verified nonprofits must demonstrate how their donations will be used,   once they raise more than $10,000 USD. You don't have to be a nonprofit; they are only requiring existing nonprofits to verify their status.  You don't even have to account for the donations if they are below $10,000. Give out your PayPal email address and instruct the gift-givers to simply send you money through their PayPal interface.  They can mark it as a gift when they send the money. I think option one is how the various bloggers and other personal users are justifiying their collection of donations, and I think its a valid use of the PayPal Donate button.
In addition to the prior answer, talking from experience, you get into trouble if you surpass the contribution limit and your employer continues to deposit money above the IRS maximum allowed. When that happens, you have until April to take out the excess contribution and earned interest on that chunk of money and included in your tax return or else you get a steep tax penalty in addition to being double taxed ( for the current and next tax year). Also from experience, payroll departments will most likely get this wrong and it will end up in a compliance mess with you picking up the tab on your tax bill. Don't let it happen!!!
All the gory details are available here. More specifically your personal limit will be listed on you last tax assessment notice, that you would have received last April-ish when you filed last year's taxes. As a first approximation, your situation may differ, if you have never contributed anything, your limit is likely $15,000 (as the program has been running three years as of 2011).
"On thing the questioner should do is review the Summary Plan Description (SPD) for the 401(k) plan.  This MAY have details on any plan imposed limits on salary deferrals.  If the SPD does not have sufficient detail, the questioner should request a complete copy of current plan document and then review this with someone who knows how to read plan documents. The document for a 401(k) plan CAN specify a maximum percentage of compensation that a participant in the 401(k) plan can defer REGARDLESS of the maximum dollar deferral limit in Internal Revenue Code Section 402(g).  For example, the document for a 401(k) plan can provide that participants can elect to defer any amount of their compensation (salary) BUT not to exceed ten percent (10%).  Thus, someone whose salary is $50,000 per year will effectively be limited to deferring, at most, $5,000.  Someone making $150,000 will effectively be limited to deferring, at most, $15,000.  This is true regardless of the fact that the 2013 dollar limit on salary deferrals is $17,500.  This is also true regardless of whether or not a participant may want to defer more than ten percent (10%) of compensation. This ""plan imposed"" limit on salary deferral contributions is permissible assuming it is applied in a nondiscriminatory manner.  This plan imposed limit is entirely separate from any other rules or restrictions on salary deferral amounts that might be as a result of things like the average deferral percentage test."
Most people will never need to pay federal gift taxes. The federal gift taxes start after giving away 5.34 million over the course of your life. This number is adjusted annually for inflation. There are only two states that I know of which impose state gift taxes (Connecticut and Minnesota); in Connecticut, you need to start paying taxes if the lifetime value of your gifts exceed two million. In Minnesota, it starts at 1 million.  The federal tax is paid for by the person making the gift, unless other arrangements are made. There is an annual exclusion amount of approximately $14,000. You can give up to this amount to any number of recipients and it is not considered taxable. Therefore, when you give $100 to someone, it is not a taxable event.  If you do make a gift to an individual in excess of 14k, you'll need to file a gift tax return (IRS Form 709). When you file form 709, you won't need to pay taxes until the 5.34 million is exceeded. Instead, you can claim an exemption. Since most people don't exceed that amount, its rare to ever pay taxes even when exceeding the annual exclusion amount. The annual exclusion amount is adjusted each year for inflation.
As someone that has run a nonprofit, my 2 cents: First: thank you for giving and for being conscientious about wanting to make things as easy as possible. The best method is the one you'll actually do. If there is a chance that you will end up not donating by check because you don't have a stamp, you forget, etc. go ahead and do it online. A donation with a fee is better than an intention without one. We had one case where a potential donor decided to give, but was so worried about the processing fee that they wanted to write a check. We followed up 3 times on the pledge, spent time following up with the pledge's connection that wanted to see if it came through, and in the end they never sent the check. Their pledge wound up costing us staff time and money as we tried to make their giving easy.  If you are as likely to give, size matters. My rule of thumb is that if you are giving $1 up to about a hundred dollars, the fee (which most nonprofits can get to about 3% or 3.5%) is about the same as the added staff time opening the check, adding an extra to the deposit slip, etc. But as soon as you are giving a couple hundred dollars and especially if you are giving in the thousands, it is definitely better to do it by check. Most banks don't charge an extra deposit fee at the scale of most nonprofits, and we probably have some run to the bank happening in the next day or two. Really your thank you note should be the same whether online or by check (even though you'll get the auto-thank you online), so that time difference shouldn't really play into it. The donation will be appreciated either way.  While I cringe a bit if I see a $1,500 donation come through online knowing that the check would be cheaper, that is far outweighed by the thankfulness that someone thought of us and made it happen.
What I want to know is;  How much does all this 'competition', advertising, marketing, etc etc actually increase how much people give as a total yearly sum of their earning?  If 40 cents on the dollar is spend advertising and 'collecting' more money. Sure it works on the scale of a single successful charity. What is the cost to charities as a whole though?  If someone gives away 2,000 a year to charity, and 19 charities all spend $100 chasing that $2000 dollars, they on average can prove they are 'making money' by spending to get that $100 'more'. But in reality, now instead of being able to give $2000 to the needy the person was actually only able to give $100.  That is my fear when we start having charities operate as big business.
As far as I can tell, it works like this: (Note, I am assuming you were 18 on Jan 1 2009) Contribution limits: So by the end of 2012, you will have been allowed to contribute $20,000 of new money. You say you've contributed $10,000, so you still can contribute another $10,000 of new money this year (But let's assume you do not...). Now, your original $10,000 has grown to $25,000.  You can withdraw this without penalty.  Next year, you will be given an allotment of another $5000 of new money (bringing your total lifetime limit to $25,000 - $10,000 = $15,000 new money) PLUS, you will be allowed to re-contribute up to $25,000 of OLD money. Of course, the government doesn't make a distinction between old and new money, so the net effect is (assuming a 25k withdrawal): 2012 limit: $10 000 2013 limit: $40 000 less 2012 contributions. From http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/tfsa-celi/cntrbtn-eng.html: The TFSA contribution room is made up of: From this wording, it means the 25 k you withdraw will go to the 2013 contribution room (bullet 3).  If you don't re-contribute, it will roll over into the 2014 contribution room (Under bullet 2)   For correctness, I must add that I did not include any indexing of the annual amount.
"This is a great question! The IRS is not 100% clear on this. IRS publications do however very strongly suggest that assuming your wife has a plan providing family coverage, you can contribute up to your family maximum. If she does NOT have a family coverage plan then the answer is definitively no, you may only contribute the individual limit. Note if you have children covered by her plan then she is considered to have ""family coverage"" even if you are not covered by her plan (see here, question 12). From the 2012 IRS publication, bottom of Page 4. For 2012, if you have self-only HDHP coverage, you can contribute up to $3,100. If you have family HDHP coverage, you can contribute up to $6,250. This is presumably the referencing the definition which is introduced and discussed for married couples on Page 6: Rules for married people. If either spouse has family HDHP coverage, both spouses are treated as having family HDHP coverage. If each spouse has family coverage under a separate plan, the contribution limit for 2012 is $6,250. You must reduce the limit on contributions, before taking into account any additional contributions, by the amount contributed to both spouse's Archer MSAs. After that reduction, the contribution limit is split equally between the spouses unless you agree on a different division. Example. For 2012, Mr. Auburn and his wife are both eligible individuals. They each have family coverage under separate HDHPs. Mr. Auburn is 58 years old and Mrs. Auburn is 53. Mr. and Mrs. Auburn can split the family contribution limit ($6,250) equally or they can agree on a different division. If they split it equally, Mr. Auburn can contribute $4,125 to an HSA (one-half the maximum contribution for family coverage ($3,125) + $1,000 additional contribution) and Mrs. Auburn can contribute $3,125 to an HSA. The last example is nearly the exact situation you are in assuming your wife's plan is family coverage.
One possible downside is contribution limit.  The 401K contribution limit is $18,000 for 2016, which is more than three times the limit for IRA contributions ($5,500).
If you are looking to transfer money to another person in the US, you can do do with no tax consequence.  The current annual gift limit is $14k per year per person, so for example, my wife and I can gift $56k to another couple with no tax and no forms. For larger amounts, there is a lifetime exclusion that taps into your $5M+ estate tax. It requires submitting a form 709, but just paperwork, no tax would be due. This is the simplest way to gift a large sum and not have any convoluted tracking or structured loan with annual forgiveness. One form and done. (If the sum is well over $5M you should consider a professional to guide you, not a Q&A board)
If the $9000 was deposited in February 2016 then it must be declared on your 2015 taxes, not 2016. You never have a choice about when to declare a contribution - the only choice you have is when to claim it as a deduction (and it's very rarely a good idea to delay claiming it). You may want to take a look at your Notice of Assessment from tax year 2015 to see if the CRA noticed the error and adjusted your return for you - the text portion would usually mention any such adjustments. If you cannot find your NoA, it can be accessed by logging in to CRA's My Account service. If your 2015 RRSP contribution amount was not already adjusted for you, then this service is also a good way to request a change to your 2015 return.  Though most people don't realize it, you technically gain your contribution room based on the previous year's income on January 1st. It's just that you usually don't know your exact income until you get your T4. This means that on Jan 1, 2016 you received that $6000 room and thus despite being wrong about which tax year the $9000 is declared, you are still right about being over by $3000. You are allowed a little wiggle room on your limit, but only $2000, so you'll be charged 1% per month for every dollar in excess of $2000 over. On January 1 2017, you would have received more contribution room based on your 2016 income, and so as of then you are no longer over your limit. That should mean that your penalty applies for 11 months, for a total of $110. You can try calling the CRA to see if they will waive or reduce your penalty, on the grounds that you were unaware of your employer's deposit. Best of luck! To answer your final question: yes, that 3K over-contribution will now basically just be reducing your available contribution room for 2017. Think of it as having -$3000 room left between February 2016 and Jan 2017, and then more room was added in January making that a positive number. So you don't need to withdraw or do anything further to fix things, other than paying your penalty or getting it waived.