Has anyone had to deal with this for previous tax years? I just realized I over-contributed to my 401k in 2022 when I had two jobs, but I already filed and received my refund for that year. Is it too late to fix? Would I need to file an amended return?

Just went through this exact same situation last month! I over-contributed by about $2,800 when I switched jobs mid-year. Here's what worked for me: 1. Called my current 401k provider (not the old one) and explained I exceeded the annual limit due to job change 2. They handled everything - calculated the excess plus earnings and processed the corrective distribution 3. Got my 1099-R about 10 days later 4. Filed my taxes normally, reporting the excess distribution as income for 2024 The key thing that surprised me was that the earnings on the excess contribution get taxed in the year you receive the distribution (2024), not 2023. So make sure you understand that when you get your 1099-R. Don't stress too much - this is super common and the 401k providers deal with it all the time. Just make sure you get it handled before April 15th to avoid the double taxation issue that @Haley Bennett mentioned for previous years.

Don't feel bad, almost everyone runs into this the first time they deal with RSUs! My company didn't explain ANY of this when I first got equity. I paid an extra $9k in taxes before a coworker told me about the cost basis adjustment. A handy trick: if you use TurboTax, when you get to the investment income section, there should be a question about "Did you receive RSU or ESPP income that's included in your W-2?" If you answer yes, they'll walk you through the adjustment process. They've gotten better about this in recent years.

Just went through this exact same situation last month! You're absolutely right that this is double taxation. Here's what worked for me: 1. **Get your vesting records**: Log into your brokerage account (or HR portal) and download the detailed vesting statements. These show the exact fair market value on each vesting date - that's your true cost basis. 2. **Form 8949 is your friend**: When you enter your 1099-B sales in your tax software, you'll need to adjust the cost basis. The "proceeds" amount from the 1099-B is correct, but you need to replace the $0 cost basis with the actual vesting value. 3. **The math**: Your capital gain should only be the difference between the sale price and the vesting price (if you sold immediately after vesting, this should be close to zero or even a small loss due to fees). I was initially showing a $45K tax bill that dropped to under $3K after fixing the cost basis. The key is making sure the RSU income isn't counted twice - once on your W-2 as ordinary income and again as capital gains. If you're still nervous about doing it yourself, definitely consider a tax pro who deals with equity compensation. This is super common and they'll know exactly how to handle it. Don't let the IRS double-dip on your RSU income!

Has anyone actually calculated how much this costs in terms of retirement savings? When I faced this issue, I did the math: With a $1000/month housing allowance excluded from 401k, and a 5% employer match, I was missing out on $600/year in employer matching contributions. Over 30 years at 7% average returns, that's roughly $60,000 in lost retirement savings! This doesn't even count the tax advantages I was missing from not being able to contribute my own pre-tax dollars from that portion of my income.

This thread has been incredibly helpful - I'm dealing with almost the exact same situation! My employer excludes my $800/month housing stipend from 401k calculations but taxes it as regular income. After reading through everyone's experiences, I think my next step is to request a copy of our Summary Plan Description to see exactly what our plan document says about eligible compensation. If it's vague or inconsistent with how they're actually handling it, I might have grounds to negotiate. The long-term impact calculations really opened my eyes too. Missing out on employer matching for that portion of my compensation could cost me tens of thousands in retirement savings over my career. Even if I can't get them to change the plan retroactively, it's definitely worth discussing during my next performance review to see if we can restructure my compensation package. Has anyone had success getting their employer to amend their plan document to include housing allowances? Or is it usually easier to just negotiate for higher base salary instead?

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.

Have you considered getting the EIN for the trust (if it doesn't already have one) and filing a final 1041 marked as "Final Return"? That would formally close out the trust's tax obligations. I helped my brother with a similar situation and we found filing a final return even with minimal income was important for clean record-keeping. We were able to deduct all the expenses you mentioned (depreciation, utilities, legal fees) which brought the income below $600, but still filed to properly document the transfer of assets. Also note that the trust will need to issue a Form 1099-MISC to your husband if it paid him more than $600 in rent during the year (assuming he took over ownership partway through the year and the trust paid him rent).

Just be careful with the depreciation calculations if the property was already being depreciated before it went into the trust. When I inherited a rental through a trust, I messed up by starting depreciation from the full value again instead of continuing the existing depreciation schedule. Also, keep in mind that when you transfer property from a trust to a beneficiary, it's generally not considered a sale, so there's no "step-up" in basis. Your husband will continue the same depreciation schedule that the trust was using, not start over with the current market value.