Frequently Asked Questions

Our FAQ’s are designed to answer many of your questions about your account and the services that InvestingCatholic provides to our clients. If your question has not been answered, please send us an email at support@investingcatholic.com

    • How are your investments screened for Catholic Values?
      Mike Wilhelmi26-11-2016

      InvestingCatholic is dedicated to providing Catholic values screened investments to all of our clients. All investment selections in all of the model portfolios "Folios" that we offer are based on Catholic values.  The investments are screened by our advisers using our proprietary screening technique to ensure that the investments are consistent with the moral values and principles of the Catholic Church.

       

      Our Ave Maria Mutual Fund Series is screened for Catholic Values, with a special focus on the protection of human life. The Ave Maria funds screen out investments in companies involved in the following: Abortion, Contraception, Embryonic Stem Research, Pornography and Companies who have made corporate donations to Planned Parenthood.

       

      Our Knights of Columbus Investment Portfolios and Catholic Values ETF Portfolios follow the United States Conference of Catholic Bishops’ Socially Responsible Investing Guidelines (“Guidelines”).

       

      Key areas identified in the “Guidelines” include:

      • Protecting Human Life
        • Abortion, Contraception, Embryonic Stem Cell Research
      • Promoting Human Dignity
        • Pornography
      • Reducing Arms Production
        • Manufacturers of Weapons (Chemical, Biological, Anti-Personnel Landmines
      • Pursuing Economic Justice
        • Avoidance of companies with child labor violations
      • Protecting the Environment
      • Encouraging Corporate Responsibility

       

    • How do I invest through InvestingCatholic?

      Click on the “Create Account” button on the top right menu on our website. It will take you to over to the investment platform provided by our custodian, FolioFN Investments Inc.

       

      From there you will be guided through the online account setup process.

       

      If you need assistance, please feel free to call us during our business hours at 1-888-710-9800 (Monday-Friday 7:30AM to 1:30PM PST), we will be happy to assist you.

    • What is the minimum amount that I can invest?

      We do not require a minimum investment amount.

    • What is your criteria for including funds within the investment models?

      We choose the investments in our model Folios based upon their Catholic social screens as well as fundamental analysis.  First, we only include funds in our Folios that we know that are filtered using Catholic social screens consistent with the USCCB Guidelines using our proprietary screening techniques.  Next, we analyze those funds using fundamental analysis to determine the most appropriate funds to be included in our portfolios.

    • Can I open more than one account?

      Yes, you can open as many accounts as you need to.

    • How do I add the Ave Maria Mutual Fund Series Folio to my account?

      Yes, you can.

      When your account is initially setup, the default Folio will be one of our Catholic Values Indexed ETF Folios. You may choose to add our Ave Maria Mutual Fund Folio to your investment allocation at any time.

       

      To do so please contact us by sending an email to support@investingcatholic.com and request that we add the Ave Maria Fund Folio to your investment allocation. Just provide us with your Folio account number, and new allocation instructions.

       

      You may include our Ave Maria Folio within your account in one of the following percentages:

      25%, 50%, 75% or 100% of your Allocation. The remainder of your Allocation percentage will be allocated to our Catholic Values Indexed ETF Series Folio.

    • Why does the model portfolio that you recommend seem too conservative?

      We recommend a suitable investment based upon your response to the risk tolerance survey, but we always give our clients the option to retake the risk tolerance survey, if they choose to do so.

       

      It is important to remember some basics of investing.

      The first rule of investing is that there is no way to time the market and that there is always a risk of loss when investing. This goes for ANY type of investment, not just the stock market. This is the reality of investing in general, and is not meant to discourage investment, rather it is an invitation to make prudent investment choices. Taking on more risk than one can bear with the hope of high returns does not always work out the way we planned.

       

      At InvestingCatholic we take steps to design our portfolios to maximize return and minimize risk using fundamental analysis and asset allocation to diversify the portfolio which can help to reduce risk. We recommend a suitable investment after you complete our risk tolerance survey which based upon two factors; time horizon and risk tolerance. A person with an aggressive risk tolerance that will need his/her money in a shorter time will be placed in  more conservative portfolio than if he/ she didn’t need to use their investment proceeds a longer time. The simple reason is that due to the short time horizon, there is less likelihood to recover from a downturn in the market in two years than in ten years and thus the investments made in the short term portfolio will be more conservative so as to minimize any potential downside risk.

    • What are Window Trades?

      Our custodian, FolioFN Investments provides us with commission-free trading offered twice a day at 11:00 EST and 2:00PM EST Monday-Friday, excluding market holidays.

       

      We place all customer trades through Folio's window trading in order to save our clients from having to pay transaction fees.

    • What are your office hours?

      Our Office Hours are 7:30AM to 1:30PM PST Monday-Friday, excluding Trading Holidays.

       

       

    • Does InvestingCatholic provide Financial Planning services?

      InvestingCatholic provides our clients with online Investment Management services.. At this time we do not provide Financial Planning services.

       

      InvestingCatholic serves as an “Internet-Only” investment adviser pursuant to Section 203A-2(e) of the Advisers Act. Under this registration, InvestingCatholic provides its investment advice to clients solely through its interactive website.

       

      Please check out our blogs, subscribe to our newsletter and follow us on social media to learn more about Catholic Socially Responsible Investing and other investing topics.

    • Why should I invest through InvestingCatholic instead of directly with my broker or mutual fund company?

      There are several advantages of being a client of InvestingCatholic.

      • Our Model Portfolios "Folios" are made exclusively of Catholic screened investments. These funds span a variety of asset classes to help diversify your investment effectively. Each Folio consists of globally diversified investments that are screened for Catholic values.  The models that we offer are carefully built by our advisers according to modern portfolio theory with the goal of delivering favorable returns at a corresponding level of risk. Your risk tolerance and investing goals help us to determine which portfolio is a good match for you. No transaction fees for trades. Clients can make smaller purchases more often, and benefit from dollar cost averaging.
      • No minimum purchase amount requirements - you can make smaller purchases more often to save and invest toward your goals...
      • We rebalance all Folios on a Quarterly basis - this is important since as different securities behave differently over time, the weight and risk of your portfolio can shift causing your portfolio to become out of balance.
      • We charge affordable fees, just .70% pr year, charged on a monthly basis - or less depending on your client balance.
      • We do not require a minimum investment to open an account
    • Do you offer Trust Accounts?

      Yes we do.

       

      We offer accounts for Revocable Trusts and Business Trusts.

    • How do I withdraw money from my account?

      You may withdrawal available cash in your account at anytime.

       

      When logged into your account at www.folioclient.com, select the "Account Quick Links" dropdown to the right side of the account pane.

       

      Next, select "Transfer Money" and follow the instructions on the website.

       

      If you wish to withdraw funds that are currently invested, please contact us at support@investingcatholic.com, or call us at 1-888-710-9800 to make a redemption request. Once the transaction is processed, you may withdraw the available cash at anytime.

    • Account Features
    • What is FolioVote?

      FOLIOVote is a unique online service that offers our clients the information needed to make informed decisions about how best to vote proxies and to handle certain other corporate actions, as well as an integrated method to cast votes.

      The FOLIOVote feature provides automatic email notifications regarding upcoming corporate actions and votes relating to securities held in our clients’ accounts.

      With FOLIOVote, our clients, or any designee they choose will receive email notifications whenever corporate actions affecting securities in their accounts are announced. Notifications will instruct the recipient on how to learn more about the issue presented and how to cast votes online when called for. It’s simple, quick, and allows direct participation in corporate governance matters.

    • Globally Diversified Catholic Values Portfolios “Folios”?

      Our advisers at InvestingCatholic have designed globally diversified, risk-based model portfolios that are built upon Modern Portfolio Theory. All of our model portfolios are built with investments screened for Catholic values using asset allocation and fundamental analysis. Our globally diversified model portfolios screened for Catholic values. Our Indexed ETF portfolios are built according to the USCCB Socially Responsible Investment Guidelines.

      We believe that diversified portfolios can minimize investment risk and have the potential to produce a higher degree of expected return for each level of risk. We recommend a suitable investment model for our clients based upon a short risk tolerance survey that the client will complete when setting up each new account. The survey evaluates our client’s ability to bear risk and their investment time horizon.

      Asset allocation is an important part of constructing diversified portfolios. It is an investment strategy that aims to balance risk and reward by apportioning a portfolio’s assets according to an individual’s goals, risk tolerance and investment horizon among various asset classes. The asset classes may include equities, fixed-income, real estate, and cash and equivalents. Each class has different levels of risk and return, so each will behave differently over time. Our model portfolios are constructed to maximize expected return while reducing potential risk according to Modern Portfolio Theory. This theory states that risk must be considered as well as return when investing and that diversification can help to reduce risk within a portfolio. We build investment models by selecting a variety of investments to achieve diversification of asset classes in order to attempt to maximize the portfolio’s expected return for a given amount of portfolio risk.

    • What is Automatic Quarterly Folio Rebalancing?

      At InvestingCatholic, we manage our model portfolios passively and rebalance them every quarter.  Rebalancing on a regular basis is an important aspect to maintain the optimal asset allocation within the model portfolios.  Over time, the weighting of the assets within a model portfolio tend to drift away from the intended targets due to the normal fluctuation in asset prices and dividends and other gains that accrue within the portfolio. Left alone without rebalancing, models can shift too far away from their intended targets and no longer reflect the intended risk and reward characteristics of the investment. Portfolio rebalancing is the process of realigning the investments within the portfolio back to their original target allocations. It is done through a process of selling overweight positions and buying positions that have become underweight. Just as it is important to tune up your car on regular intervals to keep your engine running smoothly, the same is true for your investments.

    • What tax management tools does Folio offer?
      Advanced Tax Gain/Loss Harvesting and Automatic Tax Lot Management

      Our clients have the availability to control realized gains and losses through Folio’s advanced tax lot management features. There are ten different tax management strategies available for clients to choose from to help them manage the tax lots when requesting distributions within taxable accounts. Clients accounts are automatically configured to Maximize Losses and Minimize Gains. Our clients enjoy optimized Tax Gain/Loss Harvesting which can be configured by our advisors according to any of the ten tax lot methods.

      For more information about Folio’s advanced tax management features, please visit their Help Center

    • What tax reporting tools does Folio offer?

      Tax Reporting Tools

      Tax Downloads

      Folio makes tax time easier by providing tax information downloads for your clients using the standard “.txf” tax exchange format. Our clients, or their tax preparer, should be able to import the downloaded investment data into one of the many tax preparation products available in retail stores that support .txf files, for example H&R Block’s TaxCut or Intuit’s TurboTax.

      Electronic Tax Documents

      All tax documents are loaded into our clients’ secure online Statements & Tax Records. Our clients’ can easily view, download, and print tax documents at any time.

      Automatically Prepared Form 8949 for Schedule D

      For clients with taxable accounts, tax time can be frustrating. Clients who have sold securities during the year must report each reportable sale to the IRS. The good news is that Folio does the work for you. Most brokers simply provide you with a 1099-B and let you figure it out yourself, Folio takes it a step further to make filing your taxes a breeze by creating Form 8949 for you.

    • What reporting tools does Folio offer its clients?

      Reporting: Information at your Fingertips

      Folio provides our clients with online reporting tools, electronic statements, tax documents, and more so you can review important information about their accounts and Folios.

      Account Performance Reporting

      Folio provides our clients with performance reporting so they can review how your investments are performing with their easy-to-use charting tools. Clients can see the performance of their accounts or Folios against various indices like the S&P 500, or even against an individual security or mutual fund.

      Statements, Confirms, Billing Notices, and Transaction History

      Folio provides our clients with online account statements, trade confirmations, and billing notices. Folio delivers these to our clients via an online “Statements & Tax Records” accessed securely through their dedicated advised client website at www.folioclient.com. Plus, Folio provides an easy-to-use transaction history viewer that lets our clients view up-to-date information on trading activity in their accounts.

      Monthly Statements

      Folio provides our clients with monthly account statements showing the month end balances of their accounts and Folios. It also provides a summary of activity, interest and dividends paid, cash balances deposited with each of their FDIC Insured partner banks, and other important information.

    • What Privacy and Security features does Folio offer?

      Privacy and Security: Keeping Your Account Safe

      Account Protection and Security

      Folio protects our information and our clients’ assets with proven technology, processes, and insurance. They believe in the importance of keeping our clients data secure. In addition to SSL encryption, Folio has additional security protocols in place, including second factor authentication to prevent unauthorized account access as additional security layers to keep your account secure.

       

    • Are my investments FDIC or SIPC insured?
      FDIC Insurance

      Cash deposits are insured by the Federal Deposit Insurance Corporation (FDIC)

      SIPC and Supplemental Insurance

      Folio Investments, Inc. is a member of the Securities Investor Protection Corporation (SIPC). A brochure explaining the coverage provided by SIPC is available on SIPC’s website at www.sipc.org. In addition to SIPC coverage, Folio has purchased from underwriters at Lloyds of London supplemental customer securities insurance. Together those coverages provide a total aggregate limit of $50 million limited to a combined return of $10 million to any single customer. Neither SIPC nor the supplemental insurance coverage protect against losses resulting from a decline in the market value of securities

    • Is there an account minimum?

      There is no minimum balance requirement. However accounts with a zero balance can be closed after a period of inactivity at our sole discretion. It’s easy to open a new one when you decide to invest again with us in the future.

    • Can I invest in individual funds?

      We do not support investments in individual securities at this time. We  provide model portfolios"Folios" to our clients. Our licensed financial advisers have already done all of the work for you by carefully building our model portfolios.

       

      We provide our clients with diversified Folios of our Catholic Values  low-cost Indexed  ETF Folios, as well as an option to add our Ave Maria Mutual Funds Folios to their account allocation as well.

       

      By investing with InvestingCatholic, you provide us with the discretionary authority to manage your investments on your behalf. We will recommend a model portfolio that best suits your needs based upon your risk tolerance and time horizon.

       

       

    • What is asset allocation?

      Asset allocation is an investment strategy which is designed to balance risk and reward by apportioning a portfolio's assets according to an individual's goals, risk tolerance and investment horizon. The three main asset classes are; equities, fixed-income, and cash and equivalents each have different levels of risk and return, and as such they may each behave differently over time.

    • Will I get taxed when my account gets rebalanced?

      If you have a taxable account you will receive a 1099-B for any sales that occurred during the year. These sales may consist of both long term and short term gains and losses.

    • Can I move money from one Folio to another in my account?

      Yes, you may move cash and investments between Folios that you are subscribed to within the same account at any time. Please contact us at support@investingcatholic.com for assistance.

       

      Transfers of individual securities between one Folio to another may cause your Folios to be out of balance according to their intended asset allocation and can result in realized income or loss in taxable accounts. We automatically rebalance each model on a quarterly basis on your behalf. Please contact us prior to request any transfer so we can assist you.

       

      Please be aware that when you move money from one investment model to another you will be conducting an exchange. This means that the investments that you move from your first Folio will be sold, and funds will be used to buy investments in your new Folio. If these exchanges are conducted in a taxable account will be reportable as sales and any gains and losses will be reportable to the IRS on Form 1099-B.

      If you have further questions regarding tax implications of such transactions, please refer to www.irs.gov or seek the advice of a qualified tax advisor for further assistance with this matter. The information that InvestingCatholic, LLC provides is general in nature and does not constitute legal or tax advice
    • What are Brokerage Fees?

      Our broker, Folio Investments charges their brokerage fees as a flat fee on a monthly basis. Included within its brokerage services, FOLIOfn provides our clients with commission free trades during two “window” trading sessions each day at 11:00 AM and 2:00 PM EST.

       

      Folio’s brokerage fee is charged on a monthly basis, in advance at the rate of  0.25% per year, subject to an annual minimum of $100.

      For client balances less than $40,000 – the minimum monthly fee will apply, $8.334 ($100 / 12) and will be distributed evenly accross all of your accounts. 

       

      Brokerage fees are calculated at the client level. Client level billing includes all account(s) registered under the same Taxpayer ID number for the purposes of calculating your brokerage fees. Brokerage fees are calculated and are deducted from your account(s) based on the market value of assets under management in each account at the end of each calendar month by our custodian. You will receive email notification from the custodian, at least quarterly prior to the fee deduction with instructions how to access a document on your account online that will show the fee and the method of calculation.

       

       

    • What are InvestingCatholic's Advisory Fees?

      InvestingCatholic charges our Investment Management fees on a percentage of assets basis.

       

      We bill clients on a monthly basis, in advance, based upon the following schedule:

       

      Client Assets                                  Our Annual Fee

      $0 – $100,000                                0.70%

      $100,000 – $250,000                    0.65%

      $250,000 – $1,000,000                 0.60%

      $1,000,000 and above                  0.50%

       

      For example, for an account that has a $30,000 balance, the fee is charged as follows:

      ($30,000 * .007) = $210.00 / 12 = $17.50 Monthly fee

       

      Accounts opened during the first month will be charged a pro-rated fee based upon their deposited balance and the number of days remaining in the month. For questions, please feel free to contact us at support@investingcatholic.com, or our custodian at support@folioinstitutional.com. Please reference the account number, and information about the fee you are inquiring about.

    • What is Returned Check or EFT fee?

      Returned Check or EFT fee is applied when there is a returned check or failed electronic funds transfer (EFT) request due to non-sufficient funds (NSF).

       

      Our Custodian Folio charges a $35 per occurrence fee for non sufficient funds (NSF) when a failure occurs when moving money between your bank and your investment portfolio. We apologize if this occurs, but we have no control over these fees.

       

      Common causes for non-sufficient funds may include:

      • ACH return due to insufficient funds
      • Closed bank account
      • Incorrect or outdated bank account information

       

       

    • What are Trading Service Fees?

      Trading Service Fees are fees to offset regulatory, transaction, and processing costs imposed on brokers relating to sell transactions in certain securities. The fees include the FINRA Trading Activity Fee (TAF) and other fees imposed by the NASDAQ trade reporting facility and are calculated for certain securities based on the sale proceeds and the number of shares sold.

       

      Trading Service Fees are calculated using the following formula and are rounded to the nearest penny.

      Trading Service Fees = [($0.000119 * shares sold in each trade) or $5.95, whichever is less] + [$0.0000184 * sale proceeds in each trade] + [($0.00002 * sale proceeds in each trade) or $5.00, whichever is less]

       

      For example, if you sold 200 shares of a security for $5,000.00, the Trading Service Fees would be equal to $0.22.

      $0.22 = [($0.000119 * 200) + ($0.0000184 * $5,000.00) + ($0.00002 * $5,000.00)]

    • Special Services & Fees (Folio)

      The schedule of special services and fees charged by our Custodian, FolioFN is posted at the following link Click Here

       

      If you have questions about these fees, contact Customer Service.

    • How much does it cost to trade with InvestingCatholic?

      Our custodian, FolioFN offers us "Commission free" window trades, twice daily. We place all client trades through these trading windows.

       

      Our clients may request direct trades by contacting us to make a special request. Folio charges $3.95 per security for each direct trade.

    • Can I open a retirement account with InvestingCatholic?
      Mike Wilhelmi26-11-2016

      Yes, we offer a number of options:

       

      • Traditional IRA's
      • Roth IRA's
      • Rollover IRA'S (Traditional and Roth)
      • SEP IRA'S
      • SIMPLE IRA'S
      • Beneficiary "Inherited" Traditional IRA
      • Beneficiary "Inherited" ROTH IRA
    • How much can I contribute to my Traditional or Roth IRA?
      Mike Wilhelmi26-11-2016

      Contributions to a Traditional IRA and Roth IRA should be based on your eligible annual contribution limit, and are not to exceed $5,500 per individual or $6,500  if you’re 50 and over for 2016 and 2017.

    • How do SEP IRA's work?
      Mike Wilhelmi26-11-2016

      A Simplified Employee Pension Individual Retirement Arrangement (SEP IRA) is a variation of the Individual Retirement Account (IRA) used in the United States. SEP IRAs are adopted by business owners to provide retirement benefits for themselves and their employees. There are no significant administration costs for self-employed person with no employees. If the self-employed person does have employees, all employees must receive the same benefits under a SEP plan. Since SEP IRAs are a type of IRA, funds can be invested the same way as most other IRAs.

       

      The deadline for establishing the plan and making contributions is the filing deadline for the employer's tax return, including extensions.

       

      Participation Rules

      The employee must be included if they:

      1. Attained age 21
      2. Have worked for the employer in three of the previous five years
      3. Have received at least $600 in compensation for the tax year (2016 and 2017)

       

      An employer can use less restrictive participation requirements than those listed, but not more restrictive ones.

      An employer can exclude the following employees from a SEP or SARSEP:

      • Employees covered by a union agreement and whose retirement benefits were bargained for in good faith by the employees' union and the employer
      • Nonresident alien employees who do not have U.S. wages, salaries or other personal services compensation from the employer

       

      SEP-IRA funds are taxed at ordinary income tax rates when qualified withdrawals are taken after age 59 1/2 (as for traditional IRAs). Contributions to a SEP plan are deductible, lowering a taxpayer's income tax liability in the contribution year.

       

      Contributions

      Employer contributions for each eligible employee must be:

      • Based only on the first $270,000 of compensation for 2017 ($265,000 for 2015 and 2016)
      • The same percentage of compensation for every employee
      • Limited annually to the smaller of $54,000 for 2017 ($53,000 for 2015 and 2016) or 25% of compensation
      • Paid to the employee’s SEP-IRA

       

      In plan operation, you must follow the definition of compensation stated in the document. Compensation generally includes the pay a participant received from you for personal services for a year.

       

      Special computations for self-employed individuals. When figuring the contribution for your own SEP-IRA, compensation is your net earnings from self-employment, less the following deductions:

      • one-half of your self-employment tax and
      • contributions to your own SEP-IRA.

      For more information on the deduction limitations for self-employed individuals, see Publication 560.

       

      You do not have to contribute every year. When you contribute, you must contribute to the SEP-IRAs of all participants who actually performed personal services during the year for which the contributions are made, even employees who die or terminate employment before the contributions are made.

       

      SEP-IRA contributions are treated as part of a profit-sharing plan. For employees, the employer may contribute up to 25% of the employee's wages to the employee's SEP-IRA account. For example, if an employee earns $60,000 in wages, the employer could contribute up to $15,000 to the SEP-IRA account.

       

      The total contribution to a SEP-IRA account should not exceed the lesser of 25% of income (20% for self-employed before self-employed tax deduction is included); $53,000 (2016), and $54,000 (2017).

       

      Withdrawal Rules

      SEP contributions and earnings are held in SEP-IRAs and can be withdrawn at any time, subject to the general limitations imposed on Traditional IRA. A withdrawal is taxable in the year received. If a participant makes a withdrawal before age 59½, generally a 10% additional tax applies. SEP contributions and earnings may be rolled over tax-free to other Individual retirement account and retirement plans.

       

      SEP contributions and earnings must eventually be distributed following the IRA required IRA Required Minimum Distributions.

       

      For further information regarding SEP IRA's, please review the IRS website to review SEP Plans

       

    • How do SIMPLE IRA's work?
      Mike Wilhelmi26-11-2016

      The Savings Incentive Match Plan for Employees Individual Retirement Account, commonly known by the abbreviation "SIMPLE IRA", is a type of tax-deferred employer-provided retirement plan in the United States that allows employees to set aside money and invest it to grow for retirement. Specifically, it is a type of Individual Retirement Account (IRA) that is set up as an employer-provided plan. It is an employer sponsored plan, like better-known plans such as the 401(k) and 403(b) (Tax Sheltered Annuity plans), but offers simpler and less costly administration rules, as it is not subject to ERISA and its associated regulations. Like a 401(k) plan, the SIMPLE IRA can be funded with pretax salary reduction, but those contributions are still subject to Social Security, Medicare, and Federal Unemployment Tax Act taxes.  Contribution limits for SIMPLE plans are lower than for most other types of employer-provided retirement plans as compared to conventional defined contribution plans like Section 402(g), 401(k), 401(a), and 403(b) plans.

      Plan Rules

      • Only an "eligible employer" may establish a SIMPLE IRA. An eligible employer is one with no more than 100 employees. An employer who has already established a SIMPLE IRA may continue to be "eligible" for two years after crossing the 100 employee limit.
      • Employees are not required to make regular IRA contributions to their SIMPLE IRA account.
      • The plan requires a certain minimum contribution from the employer. The employer may either (see https://www.irs.gov/Retirement-Plans/Choosing-a-Retirement-Plan-SIMPLE-IRA-Plan) match the contributions of employees dollar for dollar up to 3% of the employee's compensation (subject to certain rules that allow for lower contributions—see IRC Sec. 408) or the employer may contribute a flat 2% of compensation for each employee with at least $5,000 in compensation for the year, regardless of the amount the employee contributes.
      • The employee contribution limit is $12,500 for 2016 and 2017.
      • A catch-up provision is available for participants over the age of 50. The extra catch-up contribution allowed is $3,000 for 2015,[1] as compared to $6,000 catch up available in a 401(k), 403(b), and 457 plans.[4]
      • The SIMPLE plan can technically be funded with either an IRA or a 401(k). There is almost no benefit to funding it with a 401(k), since the lower contribution limits of the SIMPLE are required as is the expensive extra administration of the 401(k).
      • Unlike a 401(k), a SIMPLE IRA cannot be rolled over to a Traditional IRA without a waiting period (two years from the date the employee first participated in the plan).
      • SIMPLE IRAs allow for smaller contribution limits than 401(k) or Deferred Contribution Plans.
      • SEP IRAs and Traditional IRAs (among other retirement plans) cannot be "rolled over" into a SIMPLE IRA.

      Contributions

      • Employee salary reduction contributions (elective deferrals)
        • limited to $12,500 in 2015, 2016 and 2017*
        • For employees age 50 or over, a $3,000 “catch-up” contribution is also allowed in 2015, 2016 and 2017*
      • Employer contributions. The employer must annually choose one of the contribution methods below. The employer must tell employees during the election period which method will be used for the following year:
        • 2% nonelective contribution - 2% of each eligible employee’s compensation regardless of whether or how much the employee deferred, or
        • 3% matching contribution - match of employee’s elective deferrals on a dollar-for-dollar basis up to 3% of the employee's compensation.
          • May reduce the 3% limit to a lower percentage, but in any event, not lower than 1%. May not lower the 3% limit for more than 2 calendar years out of the 5-year period ending with the calendar year the reduction is effective.
        • The employer cannot make any other contributions to a SIMPLE IRA plan.

      Early withdrawal penalty

      If a participant under the age of 59 1/2 wishes to take a distribution and it has been less than two years since their first contribution into the plan, they could be penalized up to 25% (10% if more than two years) by the Internal Revenue Service. This two-year rule applies to all distributions, including rollovers from the SIMPLE IRA. Any amount withdrawn and not rolled over, regardless of age, is also subject to ordinary income tax for the year in which the distribution is made.

       

      For more information about SIMPLE Plans, please see the IRS website: SIMPLE Plans

    • What do I do if I exceeded my IRA contribution for the year?
      Mike Wilhelmi26-11-2016

      The 2016 and 2017 IRA contribution limits for both Traditional and Roth IRA’s is $5,500, plus a $1,000 additional catch up contribution amount for individuals age 50 and over.
      Excess contributions occur when you
      • Contribute more than the IRA contribution limit.
      • Make a regular IRA contribution to a traditional IRA at age 70½ or older.
      • Make an improper rollover contribution to an IRA.

       

      The IRS has rules for correcting excess contributions. Please see IRS Publication 590-A the requirements for correcting excess contributions.

       

      If you have further questions regarding excess IRA contributions, please refer to www.irs.gov or seek the advice of a qualified tax advisor for further assistance with this matter. The information that InvestingCatholic, LLC provides is general in nature and does not constitute legal or tax advice
    • What is an IRA Early distribution?
      Mike Wilhelmi26-11-2016

      An early distribution from an IRA occurs when you withdraw funds prior to reaching age 59 1/2. Generally distributions from an IRA are taxed as ordinary income plus a 10% penalty on the early distribution, however there may be exceptions.

       

      Common exceptions include:

      • First-time home purchase
      • Qualified education expenses
      • Death or disability
      • Unreimbursed medical expenses
      • Health insurance, if you're unemployed

       

      Learn more about early distributions and exceptions that apply in IRS Publication 590-B

       

      If you have further questions regarding early distributions from an IRA, please refer to www.irs.gov or seek the advice of a qualified tax advisor for further assistance with this matter. The information that InvestingCatholic, LLC provides is general in nature and does not constitute legal or tax advice.
    • What are IRA Required Minimum Distributions?
      Mike Wilhelmi26-11-2016

      The IRS requires that you begin taking Required Minimum Distributions (RMD)'s from your Tradittional IRA, SIMPLE IRA, or SEP IRA account when you reach age 70 ½.

       

      If you do not take any distributions, or if the distributions are not large enough, you may have to pay a 50% excise tax on the amount not distributed as required.

       

      You will receive notification regarding upcoming RMD's from our custodian.

       

      If you have further questions regarding Required Minimum Distributions from an IRA, please refer to www.irs.gov or seek the advice of a qualified tax advisor for further assistance with this matter. The information that InvestingCatholic, LLC provides is general in nature and does not constitute legal or tax advice
    • How can I rollover a retirement account from my previous employer to Investing Catholic?
      Mike Wilhelmi26-11-2016

      Yes, This is called a Rollover IRA.

       

      After you have opened the Rollover IRA Account with us, the next step is to request a Transfer of Assets.

       

      There are instructions within your account to start the process, its quick and easy. If you need further assistance, please feel free to give us a call.

       

       

    • What are the exceptions to an IRA early distribution penalty?
      Mike Wilhelmi04-12-2016

      Common exceptions include:

      • First-time home purchase
      • Qualified education expenses
      • Death or disability
      • Unreimbursed medical expenses
      • Health insurance, if you’re unemployed
      If you have further questions regarding IRA Distributions, please refer to www.irs.gov and or seek the advice of a qualified tax advisor for further assistance with this matter. The information that InvestingCatholic, LLC provides is general in nature and does not constitute legal or tax advice
    • Can I open an account for a minor child with InvestingCatholic?
      Mike Wilhelmi26-11-2016

      Yes you can! We offer both Uniform Gifts to Minors Act / Uniform Transfers to Minors Act accounts which are custodial accounts that are designed for investing for minor children. Note that a separate account is required for each child.

       

      Click HERE to learn more about these accounts.

    • How much can I contribute to an UGMA/UTMA?
      Mike Wilhelmi26-11-2016

      The good news is that there is no limit for contributions deposited to UGMA/UTMA on behalf of a child. Anyone can contribute for each child up to $14,000 ($28,000 for married couples) each year free of gift-tax consequences. Contributions are made with after-tax dollars.

      Contributions to UGMA/UTMA Accounts for a minor child are considered irrevocable gifts, which means that once the contributor gifts the money to the minor's account, it cannot be taken back.

      Learn more about the IRS guidelines on tax-free gifts

       

      If you have further questions regarding Gift tax exclusions, please refer to www.irs.gov or seek the advice of a qualified tax advisor for further assistance with this matter. The information that InvestingCatholic, LLC provides is general in nature and does not constitute legal or tax advice
    • Who can contribute to an UGMA/UTMA account on behalf of a minor?
      Mike Wilhelmi26-11-2016

      Anyone may contribute to an UGMA/UTMA on behalf of a minor.

    • Who receives 1099's in an UGMA/UTMA account?
      Mike Wilhelmi29-11-2016

      1099’s are issued to the SSN of the minor child/student (beneficiary).

       

      If you have further questions regarding Tax rules for children and dependents, please refer to www.irs.gov  and or seek the advice of a qualified tax advisor for further assistance with this matter. The information that InvestingCatholic, LLC provides is general in nature and does not constitute legal or tax advice
    • How can UGMA/UTMA funds be used?
      Mike Wilhelmi26-11-2016

      Funds in your child’’s UGMA/UTMA Custodial Account can be used for any purpose so long as it is for the direct benefit of the beneficiary. Expenses can include school tuition, books, medical care, etc…

       

      If you have further questions regarding Tax rules for children and dependents, please refer to www.irs.gov  and or seek the advice of a qualified tax advisor for further assistance with this matter. The information that InvestingCatholic, LLC provides is general in nature and does not constitute legal or tax advice

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InvestingCatholic, LLC is an SEC Registered Investment Adviser pursuant to Section 203A-2(e) of the Advisers Act. Under this registration, InvestingCatholic provides its investment advice to clients solely through its interactive website. Our website, www.investingcatholic.com is limited to providing general information pertaining to InvestingCatholic, LLC’s advisory services, and is intended to serve our clients and prospective clients for general informational purposes only and does not constitute investment or tax advice. Our website should not be construed by any consumer and/or prospective client as InvestingCatholic’s solicitation to effect, or attempt to effect transactions in securities, or the rendering of personalized investment advice for compensation, over the Internet. InvestingCatholic may only transact business in those states in which it is registered, or qualifies for an exemption or exclusion from registration requirements. Additional information about InvestingCatholic is also available on the SEC’s website at www.adviserinfo.sec.gov.
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