What about using the "last-month rule" for HSA contributions? If your plan qualifies as an HDHP on December 1st, you can contribute the full year's amount. But you have to remain HSA-eligible for the "testing period" (through Dec 31 of the following year). If i were you id double check if your wife's new plan (after the company acquisition) might qualify as an HDHP, even if her old one didnt.

This is such a common confusion! I went through something similar when my spouse switched jobs mid-year. Here's what I learned from my CPA: The key issue is that for HSA purposes, you're only eligible for family contribution limits if you have actual family HDHP coverage OR if both spouses have qualifying individual HDHP coverage. Having separate individual plans where only one qualifies as an HDHP means you're limited to the individual contribution amount. Since your wife's HR confirmed her plan is NOT an HDHP (even with the high deductible), you're definitely looking at individual limits only. The good news is you caught this before the tax filing deadline, so you can reverse the excess without the 6% penalty. One thing to watch out for - when you reverse the excess contribution, make sure your HSA administrator also removes any earnings on that excess amount. Those earnings need to be reported as income for the year they're distributed. Also, if your wife gets new coverage through the acquisition that IS an HDHP, you could potentially use the last-month rule for future years, but that wouldn't help with your 2024 situation.

I'm dealing with a similar situation right now! My tax preparer also missed filing 8606 forms for three years of backdoor Roth conversions. After reading through all these responses, I think the consensus is pretty clear - you definitely need to file those missing 8606 forms ASAP. Based on what everyone's saying, it sounds like you'll likely need to amend your 1040s too since your lines 4a/4b are blank. The IRS expects to see those conversion amounts reported even if the taxable portion is $0. That's a pretty significant oversight that could cause problems down the road. I'm planning to file the missing 8606 forms first with that Section 301.9100-2 relief provision noted at the top, then work on amendments for the 1040s. The good news is that since we both made non-deductible contributions and didn't take any deductions, there shouldn't be any additional tax owed - just paperwork to clean up. Definitely find a new tax preparer who actually understands retirement account rules! The fact that yours insisted the forms weren't necessary is a huge red flag. These forms are literally required by law when you make non-deductible IRA contributions.

I've been through this exact scenario and can confirm what others have said - you absolutely need those 8606 forms filed, and yes, you'll likely need to amend your 1040s too since lines 4a/4b are blank. Here's what worked for me: I filed the missing 8606 forms first (all four years separately by mail with the Section 301.9100-2 notation), then waited about 6 weeks before filing the 1040X amendments. The 8606s establish your basis, and the amendments fix the missing conversion reporting on your returns. The blank 4a/4b lines are definitely problematic. Even though your conversions were non-taxable, the IRS computers still expect to see those 1099-R amounts reported somewhere on your return. Without proper reporting, you're essentially sitting on a ticking time bomb for future audits. Your old preparer's advice was completely wrong - Form 8606 isn't optional when you make non-deductible IRA contributions. It's the ONLY way to prove to the IRS that you already paid tax on those dollars. Without it, they'll assume all your conversions are fully taxable if you ever get audited. The good news is this is fixable and you shouldn't owe any additional tax since you never took deductions. Just be prepared for some paperwork and definitely find a CPA who actually understands retirement accounts. I learned this lesson the hard way too!

Can confirm this is totally false! I'm a CPA and have clients who check their transcripts multiple times daily during tax season. The IRS transcript system is specifically designed for taxpayers to monitor their own accounts. What actually triggers audit flags are things like mathematical errors, unreported income mismatches, or claiming deductions that are way out of line for your income bracket. Checking your own tax records frequently is completely normal and expected behavior - you're not doing anything wrong!

As someone who works in tax compliance, I can definitively say this is just a myth that gets passed around every tax season. The IRS transcript system logs show millions of legitimate taxpayer accesses daily - if frequent checking triggered audits, they'd be drowning in cases! The system is actually designed with rate limiting and security measures to handle normal usage patterns. Real audit triggers are data mismatches, income reporting discrepancies, or unusual deduction patterns. Check your transcript as much as you want - you're just exercising your right to monitor your own tax account 👍

Don't forget about state taxes! I sold some collectible comic books last year and was shocked that my state wanted a piece too. Depending on where you live, you might owe state income tax on the gains. Some states also have weird exceptions or special rates for collectibles.

One thing I haven't seen mentioned yet is timing considerations. If you're planning to sell multiple pieces, you might want to spread the sales across different tax years to manage your tax bracket, especially since collectibles are taxed at that higher 28% rate. Also, if any of the pieces have appreciated significantly since you inherited them, consider getting a current appraisal before selling. This can help establish fair market value for insurance purposes during the selling process, and it gives you documentation to support your sale price if the IRS ever questions it. For the $3,800-4,500 piece you mentioned, definitely keep detailed records of comparable sales you find online - screenshot them with dates. This kind of documentation can be really valuable if you need to justify your basis calculation later.

Hey Ben! I totally get the anxiety - I went through the exact same thing a few weeks ago. Like others mentioned, "Notice issued" usually just means they're sending you paperwork about some kind of adjustment or review. Since you claimed EIC, it's probably just their standard verification process. The good news is that your return is actually moving through the system rather than being stuck in limbo. Most of the time these notices are pretty routine - could be anything from verifying your income to a small calculation adjustment. Try to stay calm until you get the actual notice in the mail, then you'll know exactly what they need from you. Hang in there! 💪

Hey Ben! I completely understand your anxiety about this - I was in your exact shoes about 3 months ago. Got the dreaded "Notice issued" on my transcript and immediately thought the worst. Turns out it was just a CP05 notice asking me to verify some information since I also claimed EIC. The whole process took about 6-8 weeks but I eventually got my full refund. The waiting is honestly the hardest part, but try to remember that "Notice issued" means they're actually working on your case rather than it just sitting in a pile somewhere. Keep checking your mailbox and once you get the notice, it'll tell you exactly what they need. Most of the time it's way less scary than we imagine it to be! Hang in there - you've got this! 🙏