vania-janet/multiturn-rag-retrieval-data huggingface dataset:
According to the 401K information from the IRS' website, it seems that you could seemingly get away with a salary as low as $53,000. It's tough, and I'd suggest speaking with an Accounting professional to get the clear answers, because as Brick's answer suggests, the IRS isn't super clear about it.  An excerpt from a separate page regarding 401K contributions: The annual additions paid to a participant’s account cannot exceed the   lesser of: There are separate, smaller limits for SIMPLE 401(k) plans. Example 1: Greg, 46, is employed by an employer with a 401(k) plan and   he also works as an independent contractor for an unrelated business.   Greg sets up a solo 401(k) plan for his independent contracting   business. Greg contributes the maximum amount to his employer’s 401(k)   plan for 2015, $18,000. Greg would also like to contribute the maximum   amount to his solo 401(k) plan. He is not able to make further   elective deferrals to his solo 401(k) plan because he has already   contributed his personal maximum, $18,000. He has enough earned income   from his business to contribute the overall maximum for the year,   $53,000. Greg can make a nonelective contribution of $53,000 to his   solo 401(k) plan. This limit is not reduced by the elective deferrals   under his employer’s plan because the limit on annual additions   applies to each plan separately. https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-401k-and-profit-sharing-plan-contribution-limits
If she selects 2012 and contributes $500, she will have contributed the maximum allowable amount for 2012, and has the option of contributing the maximum amount for 2013 as well (if she chooses to do so). If she does not max out her contribution for 2012 by April 15, 2013, that opportunity is lost, though she continues to have the option of contributing the maximum amount for 2013. Whether contributing the maximum allowable amount to a Roth IRA is a good thing or bad thing is something about which unreasonable people might differ. Edit:  @JBKing's answer makes a very good point that I will elaborate on and incorporate into this answer. Eligibility to make a contribution for 2012 is presumably a given at this point (there is at least $5000 in earned income and AGI is not too large (see Pub 950 for details)), but eligibility to make a contribution for 2013 is as yet undetermined. If the 2013 AGI turns out to be more than the limit so that the OP's sister cannot contribute to a Roth IRA for 2013, that contribution for 2013 made today will have to be withdrawn or re-characterized as a non-deductible contribution to a Traditional IRA for 2013. To the best of my knowledge, it will not be possible to re-characterize it as a Roth IRA contribution for 2012 at that point in time. So the opportunity to add $500 to the Roth IRA will be irretrievably lost. As JoeTaxpayer says, why not keep options open by making a full contribution for 2012 while the opportunity is there? In this sense, I think there is a downside to choosing 2013 instead of 2012 for that $500 contribution.
do I have to pay any tax? Technically this would be treated as Gift from non relatives and taxes as per gift tax rules. There is a limit of Rs 50,000 per year to receive funds from non-relatives. Note if the amount becomes Rs 50,001 then the entire Rs 50,001 is taxable.  If you are again giving this money to your friend, then your friend is also liable to pay Gift Tax on the money received. It is best recommended that you have your friend open an account.
"A budget that you both agree on is a great goal. X% to charity, y% to savings, $z a month to a reserve for house repairs, and so on. Your SO is likely to agree with this, especially if you say it like this: I know you're concerned that I might want to give too much to charity. Why don't we go through the numbers and work out a cap on what I can give away each year? Like, x% of our gross income or y% of our disposable income? Work out x and y in advance so you say real percentages in this ""meeting request"", but be prepared to actually end up at a different x and y later. Perhaps even suggest an x and y that are a little lower than you would really wish for. If your SO thinks you earn half what you really do, then mental math if you say 5% will lead to half what you want to donate, but don't worry about that at the moment. That could even work in your favour if you've already said you want to give $5000 (or $50,000) a year and mental math with the percentage leads your SO to $2500 (or $25,000), (s)he might think ""yes, if we have this meeting I can rein in that crazy generosity."" Make sure your budget is complete. You don't want your SO worrying that if the furnace wears out or the roof needs to be replaced, the money won't be there because you gave it away. Show how these contingencies, and your retirement, will all be taken care of. Show how much you are setting aside to spend on vacations, and so on. That will make it clear that there is room to give to those who are not as fortunate as you. If your SO's motivations are only worry that there won't be money when it's needed, you will not only get permission to donate, you'll get a happier SO. (For those who don't know how this can happen, I knew a woman just like this. The only income she believed they had was her husband's pension.
"(Really a comment on JoeTaxpayer's answer but it's too long) There's one big factor that for some people tips things strongly in favor of the Roth: While the limits on paper for traditional and Roth are the same, in practice they are not--you can contribute more to a Roth than you can to a traditional. While the contribution limits are the ""same"" in both cases, the Roth holds after-tax dollars and an after-tax dollar is worth more than a pre-tax dollar.  If you're not maxing your contribution this is completely irrelevant, but if you are maxing your contributions and would like to contribute more this is a big push in the Roth direction. Illustration:  You're in the 25% bracket, you have $100k in a traditional IRA.  What's it really worth?  $75k--because the IRS will take $25k as you pull it out.  You have the same $100k in a Roth, it's really worth $100k as the IRA won't take anything."
Yes, if you gift him with a large amount you may be liable for gift tax. I believe the current limit is still $17k per person per person per year, so between you and your spouse you could give him up to $34k per year without triggering gift tax. If you want to give a larger sum, the standard workaround is an intra-family loan. Websearch for that phrase to learn more about it, but basically you loan the money and then gift the payments on the loan. This gives him the money up front, spreading the gift over subsequent years --but it requires that you declare the interest that he is supposedly paying you as income. There is a lower limit on the interest rate for these loans, but it's a fraction of a percent so this generally isn't a significant cost. (If you are able to structure the loan as a mortgage, he may be able to deduct the interest from his taxes. That usually requires a few hundred dollars if paperwork to set up.) I've done it. It works. And one of the advantages is that it puts the exact terms of the lian on paper where everyone can agree to them, which could be useful should there be arguments later on.  When doing business with friends and relatives, keeping it on a clear business contract basis is the best way to avoid destroying the friendship.
"Congratulations on getting married! As far as the IRS is concerned, you are a married couple for all of this year for tax purposes. The 2014 HSA contribution limit for you and your husband together is $6550. This limit applies to both of you together, whether you file jointly or separately. So it looks like you and your husband have excess contributions this year. You'll need to withdraw some contributions, either in your account or your husband's account, to get under $6550 total for the year. If you choose to take this money out of your account, since you have already spent this money out of your HSA, you won't actually receive a check from the withdrawal. Instead, the money that you have already spent will be recategorized from a normal HSA medical distribution to an excess contribution withdrawal. When you get your 1099-SA form from your HSA bank at tax time, the distributions will be coded as excess contributions distributions. In addition, the form will include the amount of any earnings (interest) that you received on your excess contributions. At tax time, you'll need to examine your W-2 form from your employer closely. If the form does not include the amount that the employer HSA contribution in your taxable income, you'll need to add this amount as ""Other income"" on your taxes. You'll also need to include any earnings on the excess contributions reported on the 1099-SA. Since your husband funds his own HSA and doesn't have any employer contributions to it, you might find it easier to withdraw the excess contributions from his HSA instead of yours. To do this, you need to tell his HSA bank that the withdrawal is an excess contribution withdrawal so that it gets reported correctly on his 1099-SA. There won't be any changes to his W-2, and the only ""other income"" he'll need to report is any earnings on the excess contributions from his 1099-SA.
"Yes, the annual contribution ""limits"" are effectively higher for Roth accounts than for the corresponding Traditional account, if that is what you are referring to, since the ""nominal"" limit is the same, but for Roth it's after-tax money, while for Traditional it's pre-tax money, which is equivalent to a lesser amount of after-tax money."
Schedule C sole-proprietors must base their maximum contribution on earned income, an additional calculation that lowers their maximum contribution to 20 percent of earned income. IRS Publication 560 contains a step-by-step worksheet for this calculation. In general, compensation can be defined as your net earnings from self-employment activity. This definition takes into account the following eligible tax deductions: (1) the deduction for half of self-employment tax and (2) the deduction for contributions on your behalf to the Solo 401(k) plan. A business entity’s Solo 401(k) contributions for profit sharing component must be made by its tax-filing deadline. Single Member LLC Employee Deferral The owner of a single member LLC who is under the age of 50 may make employee deferral contributions of as much as $17,500 to a Solo 401(k) plan for 2013 (Those 50 and older can tack on a $5,500 annual catch-up contribution, bringing their annual deferral contribution to as much as $23,000). Solo 401k contribution deadline rules dictate that plan participant must formally elect to make an employee deferral contribution by Dec. 31. However, the actual contribution can be made up until the tax-filing deadline. Pretax and/or after-tax (Roth) funds can be used to make employee deferral contributions. Profit Sharing Contribution A single member LLC business may make annual profit-sharing contributions to a Solo 401(k) plan on behalf of the business owner and spouse. Internal Revenue Code Section 401(a)(3) states that employer contributions are limited to 25 percent of the business entity’s income subject to self-employment tax. Schedule C sole-proprietors must base their maximum contribution on earned income, an additional calculation that lowers their maximum contribution to 20 percent of earned income. IRS Publication 560 contains a step-by-step worksheet for this calculation. In general, compensation can be defined as your net earnings from self-employment activity. This definition takes into account the following eligible tax deductions: (i) the deduction for half of self-employment tax and (ii) the deduction for contributions on your behalf to the Solo 401(k).
Assuming you're in the US, you can buy the house from your parents for $100k with a mortgage, and the excess value (less annual gift limit) will count against your unified federal gift and estate tax exemption. So at $300k value you'd take $172k against your total exemption ($200k value over price paid, less $14k per parent). No gift tax liability on your parents' end, unless the exemption has already been used up.
Does the one giving the gift have a spouse? My wife and I can gift up to $26,000 per individual by combining our gift amounts. If the recipient has a spouse, it doubles again, so long as we write the check to that spouse.  Other than that, you make a loan and then forgive up to $13,000 in interest and principal each year until the loan is paid off.
If you are working for a small company, the expense ratios on the funds in the 401k account are likely much higher than you can get with a similar IRA. Depending on your income, whether you are married and want to contribute to a spouse's IRA, your limit on what can be contributed to an IRA may vary, but the compelling reason to contribute to a 401k is that the contribution limit is higher ($17,500 vs $5,500 for people on the lower end of the income scale) so you may need to contribute to a 401k to meet your retirement savings goals.
"Based on past case law, a check made payable to qualified charity and delivered (e.g., placed in the mail on 12/31 would count as delivered as it is out of the hands of the donor) would fall under the ""constructive receipt doctrine"". However, for non-charitable gifts (e.g., gifts to family members) it is the date the check is cashed (honored by the receiving bank).  This is important as the annual gift exclusion is just that ""Annual"".  Therefore, if I gift my child $14,000 by writing a check on 12/31/2014 but they deposit it on 1/3/2015 then I have used my annual gift exclusion for 2015 and not 2014.  This means I could not gift them anything further in 2015. BTW the annual gift amount is for ALL gifts cash and non-cash.  Most people don't seem to realize this.  If I give $14,000 of cash to my child and then also give them Christmas gifts with a value of $1,000 I have exceeded my annual gift exclusion to that child.  Usually there are ways around this issue as I can give $14,000 to each and every person I want and if married my spouse can do the same.  This allows us to give $14,000 from each of us to each child plus $14,000 from each of us to their spouse if married and $14,000 from each of us to each of their children if they have any."
Presumably, if people abused this in some way (like getting their employer to deliberately over-contribute each year and getting a refund in some sort of crazy scheme to try to reduce their SS taxes) the government would get rather upset and probably call it some sort of tax evasion. But for the amounts involved here, particularly as you're following the instructions listed, I just wouldn't worry about it. Assuming that I withdraw excess contribution and report everything on Form 8889 and Form 1040, is there any further action required from my previous employer? It's your HSA, so I wouldn't think so. Since the eligibility for HSAs is based on what you do, and not what they do (you could, for instance, get covered by a different HDHP and they wouldn't be notified nor really care), I don't think they have anything more to do with it. Also I am not sure how to calculate amount of interest attributable to excess contribution. I have only around $0.20 of total interest this year. The bank holding the HSA could probably help with that, as I'd expect it to be a normal part of the excess contribution withdrawal process. If not, I'd just make a reasonable effort based on the interest rate, amount involved, and number of days that the excess was in the account. Also keep in mind that in general when filing taxes, anything under $0.49 can round to $0. At some point, one can only be ""as honest as the law allows""."
My understanding is that to make the $18,000 elective deferral in this case, you need to pay yourself at least $18,000.  There will be some tax on that for social security and Medicare, so you'll actually need to pay yourself a bit more to cover that too. The employer contribution is limited to 25% of your total compensation.  The $18,000 above counts, but if you want to max out on the employer side, you'll need to pay yourself $140,000 salary since 25% of $140,000 is the $35,000 that you want to put into the 401k from the employer side. There are some examples from the IRS here that may help: https://www.irs.gov/retirement-plans/one-participant-401-k-plans I know that you're not a one-participant plan, but some of the examples may help anyway since they are not all specific to one-participant plans.
The owner can contribute both: •Elective deferrals up to 100% of compensation (“earned income” in the case of a self-employed individual) up to the annual contribution limit: ◦$18,000 in 2015 and 2016, or $24,000 in 2015 and 2016 if age 50 or over; plus •Employer nonelective contributions up to: ◦25% of compensation as defined by the plan, or ◦for self-employed individuals, see discussion below It continues with this example: The amount you can defer (including pre-tax and Roth contributions) to all your plans (not including 457(b) plans) is $18,000 in 2015 and 2016. Although a plan's terms may place lower limits on contributions, the total amount allowed under the tax law doesn’t depend on how many plans you belong to or who sponsors those plans. EXAMPLE Ben, age 51, earned $50,000 in W-2 wages from his S Corporation in 2015. He deferred $18,000 in regular elective deferrals plus $6,000 in catch-up contributions to the 401(k) plan. His business contributed 25% of his compensation to the plan, $12,500. Total contributions to the plan for 2015 were $36,500. This is the maximum that can be contributed to the plan for Ben for 2015. A business owner who is also employed by a second company and participating in its 401(k) plan should bear in mind that his limits on elective deferrals are by person, not by plan. He must consider the limit for all elective deferrals he makes during a year. Notice in the example that Ben contributed more that than his elective limit in total (his was $24,000 in the example because he was old enough for the $6,000 catch-up in addition to the $18,000 that applies to everyone else). He did this by declaring an employer contribution of $12,500, which was limited by his compensation but not by any of his elective contributions. Beyond the 401(k), keep in mind that elective contributions are capped across different types of retirement plans as well, so if you have a SEP IRA and a solo 401(k), your total contributions across those plans are also capped.
I have worked for companies that have done this. One did have a match and the other did not. When they figured their profit at the end of the year a portion was given to the employees as a 401K deposit.  retirement-topics-401k-and-profit-sharing-plan-contribution-limits Total annual contributions (annual additions) to all of your accounts   in plans maintained by one employer (and any related employer) are   limited. The limit applies to the total of: elective deferrals employer matching contributions employer nonelective contributions allocations of forfeitures The annual additions paid to a participant’s account cannot exceed the   lesser of: 100% of the participant's compensation, or $54,000 ($60,000 including catch-up contributions) for 2017;  $53,000   ($59,000 including catch-up contributions) for 2016. So as long as everything stays below that $54,000 limit you are good. In one case the decision was made by the company for the employee, the other company gave us the option of bonus check or 401K. I heard that most of the employees wanted the money in the 401K.
So, to get the grossed-up amount for a $100 gift in a 25% bracket, we'd calculate 1/(1-.25), or 1/.75, or 1.333, multiply that by the target gift amount of $100, and end up with $133.33. The equation is a little uglier if you have to pay state income taxes that are deductible on the federal return but it's a similar principle. The entire $133.33 would then be reported as income, but the net effect on the employee is that they're $100 richer after taxes. The ""gross-up"" idea can be quite complicated if you dig into the details - there are some circumstances where an additional few dollars of income can have an unexpected impact on a tax return, in a fashion not obvious from looking at the tax table. If the employer doesn't include the gift in Box 1 on the W-2 but you want to pay taxes on it anyway, include the amount in Line 7 on the 1040 as if it had been on a W-2, and fill out form 8919 to calculate the FICA taxes that should have been withheld."
You are using interchangeably borrow/loan and gift. They are very different. For the mortgage company, they would prefer that the money from friends and family be a gift. If it is a loan, then you  have an obligation to pay it back. If they see money added to your bank accounts in the months just before getting the loan, they will ask for the source of the money. Anything you claim as a gift will be required to be documented by you and the person making the gift. You don't want to lie about it, and have the other person lie about it. They will make you sign documents, if they catch you in a lie you can lose the loan, or be prosecuted for fraud. If the money from friends and family is a loan, the payments for the loan will impact the amount of money you can borrow. From the view of the IRS the gift tax only comes into play if during one calendar year a person makes a gift to somebody else of 14,000 or more. There are two points related to this. It is person-to-person. So if your dad gives you 14K, and your mom gives you 14K, and your dad gives your wife 14k and your mom gives your wife 14K; everything is fine. So two people can give 2 people 56K in one year. Please use separate checks to make it clear to the IRS. If somebody gives a gift above the exclusion limit for the year, they will have to complete IRS form 709. This essentially removes the excess amount from their life time exclusion, in other words from their estate.  Nothing to worry about from the IRS. The bank wants to see the documentation. Also you are not a charity, so they can't claim it as a donation. Why do you have 6,000 in cash sitting around. The mortgage company will want an explanation for all large deposits so you better have a good explanation. From the IRS FAQ on Gift Taxes: What can be excluded from gifts? The general rule is that any gift is   a taxable gift. However, there are many exceptions to this rule.   Generally, the following gifts are not taxable gifts. Number 3 on the list is the one you care about.