Any Kaiser (TPMG) docs here?

[tonyjerry]

Recently received an email regarding a Plan 2 make up payment but it doesn't have any details. How is this payment calculated and paid? I assume it cant be in 401k because that would put people over the IRS limit.

[321zaron]

My wife is a physician with TPMG, and bought her shares 3 years ago. She took a loan with Sacramento Credit Union.

I heard today that the interest paid on this loan is deductible. Anyone know how to claim this on one's taxes?

[barelybarefoot]

Recently received an email regarding a Plan 2 make up payment but it doesn't have any details. How is this payment calculated and paid? I assume it cant be in 401k because that would put people over the IRS limit.

Employer Contributions
The general limit on total employer and employee contributions for 2020 is $57,000, or 100% of employeecompensation (subject to a max of $285,000), whichever is lower.

so if your wife makes >$285, the amount that would have been employer contribution gets sent to her by way of income (extra check).

[wally world]

Recently received an email regarding a Plan 2 make up payment but it doesn't have any details. How is this payment calculated and paid? I assume it cant be in 401k because that would put people over the IRS limit.

To add some additional info to barelybarefoot's answer-

The Plan 2 Make Up payment is made once a year to TPMG physicians whose compensation exceeds the IRS compensation limit (285k in 2020). It is paid as a separate deposit from your regular paychecks (has been in mid-September the past few years, though has been moved to October this year, so you'll get three deposits that month). The entry on your pay stub for this payment has read "Lost Plan 2" in the past (so I assume that's what it'll say this year as well). The amount of the payment is essentially 10% of your salary above the IRS compensation limit up to a total maximum payment of $15,885 in 2020. The amount is determined by the limit on total allowed contributions for the given year. As barelybarefoot mentioned above, the limit this year is 57,000. So the Lost Plan 2 payment ends up equaling the contribution limit minus the max Plan 3/401k contribution minus the max Plan 2 contribution. So, for this year--> 57000 - 19500 - 21615 = 15885. Of course, that is the pre-tax amount of the payment, so the amount that hits your account will be less.

[These numbers are determined by the IRS each year (compensation limit, limit on employer/employee total contributions, 401k contribution limits, etc). The amount of the Plan 2 contribution ends up being 5% of your compensation up to the Social Security wage base and then 10% of the amount between the Social Security wage base and the IRS compensation limit.]

Hope that helps!

[NationalPark]

Do A/B shares also accrue “interest” as additional shares? Or does that only apply to C shares?

[tonyjerry]

Thanks wally thats exactly what I was wondering

[wally world]

Do A/B shares also accrue “interest” as additional shares? Or does that only apply to C shares?

Yes, as fractional amounts of C shares. While the $ value of the A and B shares is fixed (and you can only own one of each of those shares), you will receive bits of C shares each year reflecting the "interest" on the A/B shares. So if you only buy the mandatory A and B shares when you become a partner, the next year you will get some parts of C shares added to your account (though obviously not as many as if you had bought the full amount of C shares upon making partner).

[fatlittlepig]

Yes, as fractional amounts of C shares. While the $ value of the A and B shares is fixed (and you can only own one of each of those shares), you will receive bits of C shares each year reflecting the "interest" on the A/B shares. So if you only buy the mandatory A and B shares when you become a partner, the next year you will get some parts of C shares added to your account (though obviously not as many as if you had bought the full amount of C shares upon making partner).

Could I buy more C shares if for some reason I wanted to?

[wally world]

Could I buy more C shares if for some reason I wanted to?

Hi FLP! I'm pretty sure the way it works is that you can buy more C shares only if you didn't purchase the maximum amount when you became a partner (or didn't do that subsequently). In 2020, the total maximum amount of shares any TPMG physician can own is 6.49. So, the max would be 1 A Share + 1 B Share + 4.49 C Shares (which would be your Purchased Class C + Granted Class C shares). If you're not at the max, then you can buy up to it (though I'm not sure how that process works, I imagine you just call Physician Services to get the total amount that you can still purchase and find out where to send the check )

[2BReal]

My wife is a physician with TPMG, and bought her shares 3 years ago. She took a loan with Sacramento Credit Union.

I heard today that the interest paid on this loan is deductible. Anyone know how to claim this on one's taxes?

It's considered investment interest expense: https://turbotax.intuit.com/tax-tips...nses/L9TeFQAf9

[2BReal]

Hi FLP! I'm pretty sure the way it works is that you can buy more C shares only if you didn't purchase the maximum amount when you became a partner (or didn't do that subsequently). In 2020, the total maximum amount of shares any TPMG physician can own is 6.49. So, the max would be 1 A Share + 1 B Share + 4.49 C Shares (which would be your Purchased Class C + Granted Class C shares). If you're not at the max, then you can buy up to it (though I'm not sure how that process works, I imagine you just call Physician Services to get the total amount that you can still purchase and find out where to send the check )

Yes, physicians not at the maximum value have the opportunity to buy more Class C shares once a year - there is a 60-day window (March 1st to April 30), with option to buy up more Class C shares, but no more than the value held by the most senior shareholders.

NOTE: If you became a senior physician prior to 2010, you AUTOMATICALLY have the maximum number of C shares (and thus don’t need to worry about having to purchase additional shares).

[StarTrekDoc]

Anyone signed up with Long Term Care benefit for self or parents via UNUM?

They recently sent a notice and call to my parents who have had the policy for nearly 10 years and saying that they will be increasing the premiums 30% or allow them to cancel and a refund of premiums paid to date. Has anyone received such a notice?

[Tim]

Policies. Thanks for the heads up. Haven’t seen notice nor a call.
Doesn’t mean it’s not coming.

https://www.google.com/amp/s/www.thinkadvisor.com/2020/07/29/covid-19-increased-ltci-claimant-mortality-30-unum/%3famp=1

Not sure, the price increase seems to follow the above release. Not sure how this plays out. Unum no longer sells LTCI. I can see them wanting to clear out now. Not sure it’s a good deal though if they need LTCI. Getting new LTCI would be the question. When both have coverage, it muddles the picture. My gut leans to the refund isn’t worth dropping. No idea where LTC costs are going.
Please update if you find out more or make choices.

[KaiserMed]

It's considered investment interest expense: https://turbotax.intuit.com/tax-tips...nses/L9TeFQAf9

I looked into this too but I think you can only use that deduction if you actually have some other kind of net investment income. In other words, you can’t write it off against regular W-2 income, which is all we have in our situation.

[Tim]

I looked into this too but I think you can only use that deduction if you actually have some other kind of net investment income. In other words, you can’t write it off against regular W-2 income, which is all we have in our situation.

Investment interest expense is carried forward. Hopefully you eventually you have investment income.