Has anyone here used the RMD method instead of amortization? I've heard it can result in lower initial payments but they increase over time.

I'm dealing with a similar situation and want to add some perspective based on my recent experience. The key thing to understand is that while there's no explicit minimum interest rate in the tax code, the IRS requires the rate be "reasonable" - which creates a practical floor based on current market conditions. I was also trying to get my withdrawals down from around $38k to closer to $25k annually. After consulting with a tax attorney who specializes in retirement distributions, I learned that you can generally use rates in the 2.5-3.5% range safely, especially if you can tie them to published rates like Treasury bonds or high-grade corporate bonds. The attorney also suggested looking into the account splitting strategy mentioned by Paolo - this was actually the most effective approach for me. I moved about 65% of my IRA balance to a separate account and only set up the 72(t) on the smaller portion. This got my required distribution down to exactly where I needed it without having to push the interest rate to questionable levels. One word of caution: make sure you get professional help with the calculations and documentation. The penalties for messing up a 72(t) plan are severe - you'll owe the 10% penalty on all distributions you've taken PLUS interest. It's worth paying for proper guidance upfront rather than risking an expensive mistake later.

I went through this exact scenario with Jackson Hewitt last year and can confirm what others have said. The process is: 1) Your refund gets processed by IRS, 2) Republic Bank gets repaid for the advance first, 3) Treasury Offset takes their portion for the student loans, 4) Whatever remains goes to you via your original refund method. In my case, I had a $4,800 refund, took a $1,200 JH advance, had a $2,900 offset for my spouse's defaulted student loans, and ended up receiving $700 via direct deposit about 2-3 weeks after my return was accepted. The key thing to remember is that Republic Bank has priority since the advance is essentially a secured loan against your refund - the offset doesn't affect their ability to get paid back. One tip: you can call the Treasury Offset Program at 1-800-304-3107 to get the exact offset amount beforehand so you can calculate what you'll actually receive. This helped me manage my expectations and plan accordingly. The whole process was actually smoother than I expected once I understood the order of operations.

I'm dealing with a very similar situation right now - got the JH advance and just found out about an offset for my spouse's old student loans. Reading through all these responses has been incredibly helpful and reassuring. It sounds like the consensus is pretty clear: Republic Bank gets paid back first, then the offset happens, then whatever's left goes to you via your chosen method. What I'm still wondering about is the timing. Some people mentioned 2-3 weeks, others said longer. Has anyone experienced delays specifically because of the offset, or does it generally process within the normal timeframe? Also, for those who went through this - did you get any kind of documentation or breakdown showing exactly how your refund was distributed between Republic, the offset, and your final amount? I like to keep detailed records and want to make sure I understand exactly what happened when it's all said and done. Thanks to everyone who shared their experiences - this is exactly the kind of real-world info that's impossible to find in the official documentation!

I totally get where you're coming from - that first property tax bill after buying your home is absolutely brutal! I went through the same shock when I bought my place two years ago. One thing that helped me mentally was learning that property taxes actually have some built-in protections that other housing costs don't. Unlike rent (which can increase dramatically each year) or HOA fees (which can spike with special assessments), property tax increases are usually capped by state law. In most places, assessments can only go up by a small percentage annually, even if your home's market value skyrockets. Also, here's something that made me feel better about the "never truly owning your home" concern: even if you paid cash for your house and have no mortgage, you'd still be paying many of these same costs in different forms. Private trash collection, private security, private road maintenance, private fire protection - all of that would likely cost MORE than what you pay in property taxes, and you'd have no democratic input on how those services are provided. The real key is making sure you're not overpaying. Definitely look into homestead exemptions (can save $500-2000+ annually), and don't be afraid to appeal your assessment if it seems high. I successfully appealed mine last year using comparable sales data and saved about $800 annually. The process was way less intimidating than I expected. Yes, the system could be better, but understanding it and working within it makes homeownership much more manageable!

I completely understand your frustration - I had the exact same reaction when I got my first property tax bill after buying my home! That feeling of "wait, I have to keep paying just to live in something I own?" is so real and honestly pretty valid. What helped me get past the initial anger was doing some research into what happens in places with very low or no property taxes. Turns out, those areas often have crumbling infrastructure, underfunded schools, and longer emergency response times - all things that directly impact your home's value. Your $425k house would likely be worth significantly less in an area with poor public services. That said, definitely don't just accept your tax bill at face value! I learned this the hard way - there are tons of exemptions and programs most new homeowners don't know about. Homestead exemptions alone can save you hundreds annually, and if you're a veteran, teacher, or meet certain other criteria, there might be additional savings available. Also, if your assessment seems high compared to similar homes in your area, absolutely appeal it. I was intimidated at first, but the process was actually pretty straightforward. I gathered sales data from comparable homes, showed my assessment was about 10% higher than market reality, and got it reduced. Saves me about $600 per year now. The system isn't perfect, but understanding it and making sure you're not overpaying makes it much more tolerable. Think of it as insurance for your investment rather than just another bill!

I just went through this exact situation with an inherited IRA from my aunt last year. The most important thing to understand is that you're absolutely correct - inherited IRA distributions are exempt from the 10% early withdrawal penalty regardless of your age. Here's what you need to know: You'll receive a 1099-R from the financial institution holding the IRA. Look at Box 7 for the distribution code. It should show code "4" which indicates a death distribution and automatically exempts you from the penalty. If it shows code "1" instead (which sometimes happens when institutions make errors), you'll need to file Form 5329 and use exception code "4" on line 2. The $18,500 will be reported as ordinary income on your tax return, but no penalty will apply. Since your uncle was 64 and passed after 2019, you'll be subject to the 10-year rule under the SECURE Act - meaning the entire account must be distributed by December 31st of the year containing the 10th anniversary of his death. Make sure to keep all documentation proving the inheritance (death certificate, beneficiary paperwork, account statements showing it's titled as inherited) in case the IRS questions it later. Their automated systems sometimes flag these distributions for review, but having proper documentation makes resolving any inquiries straightforward. Don't stress too much about this - it's a common situation and as long as everything is properly documented, you should have no issues with the tax treatment.

I went through this exact same situation when I inherited my father's IRA at age 31. You're absolutely right that inherited IRA distributions are exempt from the 10% early withdrawal penalty - this is one of the automatic exceptions that applies regardless of your age. Here's what you need to focus on: When you receive your 1099-R forms from the financial institution, check Box 7 for the distribution code. It should show code "4" which indicates a death distribution. If it shows this code, your tax software should automatically apply the penalty exemption when you enter the form. However, if Box 7 shows code "1" (early distribution) instead of "4" - which unfortunately happens sometimes when institutions make coding errors - you'll need to file Form 5329. On that form, you'd enter the distribution amount on line 1, then claim the exception on line 2 using exception code "4" (death of the IRA owner). The $18,500 will be fully taxable as ordinary income on your 2025 return, but zero penalty should apply. Since your uncle passed after 2019 and was under 72 (his RBD), you'll have flexibility in timing future distributions but must empty the account within 10 years of his death. My advice: keep copies of the death certificate, beneficiary designation paperwork, and any account statements showing the inherited IRA title. The IRS sometimes reviews these distributions later, and having documentation ready makes any inquiry much smoother.

Just a heads up, there are actually some options with that inherited IRA you might not know about. The SECURE Act changed a lot of the rules, but there are still exceptions to the 10-year distribution rule. If you're a spouse, disabled, chronically ill, not more than 10 years younger than the deceased, or the inheritor is a minor child of the deceased, you might have different options. Worth looking into before assuming you need to take it all at once!

This is a complex situation that requires careful coordination between your S-Corp strategy and the inherited IRA timing. A few key points to consider: First, you're absolutely right that S-Corp profits pass through to your personal return regardless of distributions - you can't avoid that tax liability by leaving money in the company. However, the "reasonable compensation" requirement is critical and you cannot completely eliminate your salary while actively running a profitable business. Regarding the inherited IRA, don't assume you must take it all in one year! The SECURE Act's 10-year rule typically allows you to spread distributions across the decade, which would be much more tax-efficient than a lump sum. There are also exceptions for certain beneficiaries that might apply. My suggestion: Work with a tax professional to model scenarios where you take minimal (but reasonable) S-Corp salary in the high-income year, spread the IRA distributions strategically across multiple years, and potentially increase legitimate business deductions to reduce pass-through income. This approach could save you tens of thousands compared to taking everything at once. The timing flexibility you have as executor is valuable - use it to optimize the distribution schedule rather than rushing into a massive one-year tax hit.