Another option as executor: check if your uncle qualified for Currently Not Collectible (CNC) status. If he had financial hardship, the IRS might have placed his account in CNC status. This doesn't stop the 10-year clock, so the debts might have expired anyway. Also, if there were any IRS errors in assessment or collection, those could potentially invalidate the debt. It's worth having a tax professional review everything before you pay anything from the estate.

I'm dealing with a similar situation right now with my grandmother's estate. One thing I learned is that even if some debts have expired under the 10-year rule, the IRS might still send collection notices because their computer systems don't always automatically stop collection activities when the CSED passes. As executor, you have the right to challenge any collection attempts on expired debts. If you determine through the transcripts that certain tax years have passed their CSED, you can send a written response to the IRS citing the expired statute of limitations. Make sure to keep copies of everything and send any correspondence via certified mail. Also, don't feel pressured to pay anything immediately. Take time to get the transcripts and verify which debts are still valid. The estate administration process gives you some breathing room to sort this out properly before making any distributions to beneficiaries.

I just want to echo what others have said about not panicking - this is definitely fixable! I went through this exact scenario two years ago when I switched from a startup to a larger company mid-year. One thing I'd add that hasn't been mentioned yet is to double-check if either of your employers offers a "safe harbor" provision where they automatically return excess contributions. Some larger companies have systems that catch this automatically, but since you switched jobs, it's less likely they would have caught it. Also, when you call your current 401k provider, ask them about the timeline for processing. Mine took about 3 weeks to process the corrective distribution, so factor that into your tax filing plans. If you're cutting it close to April 15th, definitely consider that extension like you mentioned. The good news is once you get through this, you'll be much more aware of contribution limits for future job changes. I now track my contributions monthly in a simple spreadsheet to avoid this happening again!

I went through this exact situation last year and wanted to share what worked for me since there's been some great advice here already! After reading through all the responses, I'd definitely recommend calling your current 401k provider first - they really do handle this all the time. One thing I'd add is to ask them about their specific timeline for processing when you call. My provider (Fidelity) was able to process everything in about 10 business days, but I've heard others can take up to a month. This timing is crucial if you're trying to get your taxes filed by April 15th. Also, make sure to ask for email confirmation of your request when you call. Having that documentation was super helpful when I needed to reference the case later. The customer service rep walked me through exactly what would happen and when I'd receive the 1099-R. The whole process was way less stressful than I expected once I actually made the call. Don't overthink it - just gather your W-2s, calculate your total contributions from both employers, and give them a call. You've got this!

I'm dealing with a very similar RSU situation right now and this thread has been incredibly helpful! I received RSUs from my company last year and when I looked at my 1099-B, I also saw the dreaded $0 cost basis that's causing massive phantom capital gains. What really helped me understand the issue: My company's HR department actually has a "Tax Guide for Equity Compensation" document that explains exactly how RSU taxation works. It turns out that when RSUs vest, the fair market value on the vesting date gets reported as ordinary income on your W-2 (which you already paid taxes on). That same vesting day value should be your cost basis for capital gains calculations when you sell. For anyone still struggling with this, I found that calling your company's stock plan administrator (usually listed on your equity portal) can be really helpful. They often have specialists who can walk you through getting the correct vesting values and explain how the tax reporting should work. Some companies even provide pre-filled Form 8949 worksheets for employees. The key insight from my research: If you sold your RSUs immediately or shortly after vesting (like most people do), your actual capital gain should be very small - maybe just a few dollars per transaction due to market movement and fees. The massive "gains" showing up are really just the IRS seeing the full sale proceeds without the proper cost basis. This whole system definitely needs to be redesigned to be more user-friendly, but at least it's fixable once you know what to look for!

I went through this exact nightmare two years ago and I totally understand your panic! That jump from $800 to $32K is definitely not normal and you're absolutely right to suspect the RSU double taxation issue. Here's what happened to me: My brokerage (Schwab) reported all my RSU sales with $0 cost basis on the 1099-B, making it look like I had massive capital gains when I really didn't. The RSU income was already taxed as ordinary income when they vested and appeared on my W-2 (just like your $123K). The fix is definitely Form 8949 like others have mentioned, but here's a practical tip that saved me hours: Most brokerages have an "equity compensation" or "RSU tax center" section in their online portal that shows your actual cost basis for each transaction. Look for something called "tax lot details" or "cost basis information" - this will give you the exact numbers you need for Form 8949. I ended up using FreeTaxUSA instead of TurboTax because their RSU adjustment workflow was clearer to me, but both can handle it. The key is finding the section where you can override the $0 cost basis with the actual vesting day fair market value. After making the corrections, my tax bill dropped from $24K to about $3K. Don't stress - this is super common and completely fixable! Given your amounts though, a tax pro who specializes in equity comp might be worth the peace of mind.

Has your mom checked whether a "tax-free liquidation" under Section 337 might be possible? It's complicated but can sometimes allow for liquidation without recognizing gains. Also, don't forget to look into "step-up in basis" rules since the assets were inherited - this might significantly reduce any potential tax impact on sale.

I'm so sorry for your loss. Closing a business after a death is incredibly overwhelming, especially when you're still grieving. One important thing to consider is the timing of everything. Your mom has inherited these business assets with what's called a "stepped-up basis" - meaning their tax basis is reset to fair market value as of your dad's date of death. This can actually save a lot in capital gains taxes compared to what your dad would have owed if he had sold them while alive. Before making any major decisions about selling assets to family members, I'd strongly recommend having your mom meet with both an estate attorney AND a tax professional who specializes in business closures. The accountant's confusing explanation might be because there are several different tax strategies that could apply depending on how the business was structured (sole proprietorship vs. LLC vs. corporation) and the total value of assets involved. Also, your mom doesn't necessarily have to rush this process unless there are pressing debts or lease obligations. Taking time to properly value everything and find legitimate buyers at fair market prices will likely result in better outcomes than quick sales at below-market rates. The inventory and equipment in those shipping containers might be worth more than you think, and rushing to liquidate could leave money on the table that your family deserves.

This is such a helpful discussion! I'm dealing with a similar situation with my company's car allowance - they're taxing it but excluding it from 401k calculations. After reading through everyone's experiences, I'm realizing I need to be more systematic about this. The advice about requesting the Summary Plan Description and looking for the specific definition of "eligible compensation" is exactly what I needed to hear. I've been accepting HR's vague explanations without actually seeing the documentation. What really struck me was Rachel's calculation showing $60,000 in lost retirement savings over 30 years. I never thought about the compound effect like that. My car allowance is $600/month, so even with a smaller amount, I'm potentially looking at significant long-term losses. I think my next steps will be: 1) Request the SPD and look for specific language about what's included/excluded, 2) Calculate the actual financial impact like Rachel did, and 3) approach my manager during our next one-on-one to discuss restructuring my compensation package. Has anyone found that companies are more willing to make these changes during annual compensation reviews, or is it better to bring it up as soon as possible? I don't want to wait until next year if there's a chance to fix this sooner.

This thread has been incredibly eye-opening! I'm a tax preparer and I see this confusion all the time with clients. What many people don't realize is that the IRS has different rules for different purposes - what counts as taxable income for Form W-2 purposes isn't necessarily the same as what counts for retirement plan contributions. The key thing to understand is that your employer's 401(k) plan document is essentially a contract that defines the rules for that specific plan. As long as they follow their own written rules consistently and pass IRS non-discrimination testing, they have a lot of flexibility in how they define "eligible compensation." I've seen clients in similar situations who were able to get their issues resolved, but it usually required one of three approaches: 1) Finding an actual error in how the company was interpreting their own plan document, 2) Negotiating a compensation restructure during performance reviews, or 3) Working with benefits administrators to clarify plan language that was genuinely ambiguous. The long-term impact calculations people have shared here are spot-on. Missing employer matching on even $500-1000/month in allowances can easily cost you $30,000-60,000 in retirement savings over a career. That's definitely worth a few uncomfortable conversations with HR! My advice: get the plan documents, run the numbers, and approach it as a financial planning optimization rather than a complaint. Good luck everyone!