Has anyone here actually set up a self-directed Roth IRA? What's involved in the process and what are the ongoing costs? I've heard there are specialized custodians required and wondering if it's worthwhile for smaller accounts.

I set up a self-directed Roth IRA about 3 years ago. The process involves finding a custodian that specializes in alternative assets - companies like Equity Trust, Directed IRA, or IRA Financial Group. You complete their paperwork, transfer funds from an existing Roth or make a new contribution, and then direct investments through their platform. The costs vary significantly between custodians. Most charge an annual fee (typically $200-600 depending on account size) plus transaction fees for each investment. Some charge based on number of assets held, others on account value. For smaller accounts under $50,000, these fees can significantly impact returns, so I'd recommend having at least $75,000-100,000 before considering this route to make the administrative costs worthwhile relative to potential returns.

I've heard conflicting advice about this though. Some advisors say to put bonds in the Roth because they generate regular income that would be taxed, and growth stocks in taxable accounts where you can harvest losses and get long-term capital gains rates. What made you choose your approach?

Does anyone know if I have to ask about this specifically or would it be something automatically offered in benefits packages? I've been at my company for 3 years but don't remember seeing anything about commuter benefits during enrollment.

You definitely need to ask specifically about commuter or transportation benefits. Many companies offer them but don't promote them heavily during benefits enrollment since they focus more on health insurance and retirement plans. It's often administered through a separate system. Check with your HR department or benefits coordinator. If they do offer it, you can typically enroll at any time, not just during open enrollment. If they don't currently offer it, some companies will consider adding the benefit if enough employees express interest since it's relatively simple to implement and also saves the company on payroll taxes.

Or check if monthly parking passes are cheaper than daily rates! When I switched to a monthly pass instead of paying the daily rate, I saved about 35%. Some garages also have early bird specials if you arrive before a certain time.

Do those store-bought kits usually include multiple forms? I need to do about 15 1099-MISCs this year, and some packages I've seen only include 5 forms.

The kits vary, but most I've seen include 10-25 forms plus one or two 1096 summary forms. If you need more, you can usually buy additional forms separately. The important part is that once you have the template software, you can print as many forms as you need if you purchase additional blank forms. Look for kits labeled as "1099 & 1096 Kit for Laser and Inkjet Printers" or something similar. Just be sure to check that it's for the current tax year, as the forms do change occasionally.

This tripped me up last year! To clarify, what exactly is supposed to go on 1099-MISC now vs 1099-NEC? I have both contractors and some royalty payments.

I accidentally filed everything on 1099-MISC last year even though they should have been on NEC, and had to amend all of them. What a nightmare.

3 This is such an important point. When I sold post-divorce, my accountant didn't initially factor in the £27k kitchen renovation we'd done, which would have significantly increased my CGT bill. Do things like a new bathroom count as "improvements" or just "maintenance"?

8 Great question about bathrooms. The distinction between "improvements" and "maintenance" is important for CGT. A completely new bathroom would typically count as an improvement and can be added to your base cost. However, just replacing existing fixtures with similar ones is usually considered maintenance and isn't allowable. The rule of thumb is whether you've enhanced the property's value or just maintained its condition. Extensions, loft conversions, new kitchens or bathrooms, adding central heating where none existed before - these count as improvements. Repainting, fixing a leaky roof, or replacing worn carpets are maintenance and can't be added to your base cost.

19 You should be fine as long as you sell the shared property before or on the same day you complete on the new purchase. If there's going to be a gap where you technically own parts of two properties, then yes, you could be hit with the higher rate. Timing is everything!

Thanks for this detailed breakdown! I didn't realize getting an EFIN was so involved. Do you know roughly how long the whole process takes from applying for a PTIN to getting approved for e-filing?

Getting a PTIN is pretty quick - usually just a few days if there are no issues with your application. The EFIN process is much longer. After you submit the application, get fingerprinted, and complete the background check, it typically takes 45-60 days for approval. So if you're thinking about offering this service for the upcoming tax season, you should start the application process immediately. And remember that you'll need to renew your PTIN annually, which means additional fees. The EFIN doesn't need annual renewal, but you do need to keep your information updated with the IRS.

This is misleading. An ERO still needs an EFIN from the IRS, which requires background checks and compliance with IRS e-file regulations. You can't just "become" an ERO without going through the proper channels. And for the PTIN holder, they're still taking on liability for returns they "sign" - most professionals won't do this unless they're properly compensated and have reviewed everything.

You're right, I should have been clearer. Yes, you still need an EFIN to be an ERO, which requires the background check and application process. What I was trying to say is that there are partnership arrangements where one person has the client relationship and another has the PTIN, working together to provide the service. It's definitely not a shortcut around IRS requirements - just a different business model. Thanks for the correction!