Has anyone calculated whether there's actually any market risk in selling and rebuying vs doing the in-kind transfer? I keep hearing that time out of market is a concern but for a same-day sale and purchase, how much could prices really change?

Great question about the market risk! I actually went through this exact calculation when I did my son's Coverdell distribution last spring. For individual stocks, the risk can be pretty significant even intraday - especially if you're dealing with volatile securities. But even with stable dividend stocks, I found the bid-ask spread alone could cost me 0.1-0.3% on each transaction (sell + buy = double hit). The bigger issue I ran into was timing - even though I planned to sell and rebuy the same day, my Coverdell custodian took 2 business days to process the distribution request, and then another day for the cash to settle in my brokerage account. So I was actually out of the market for 3 days, during which one of my holdings went up 4%. The in-kind transfer took the same 2-3 days to process, but the shares were never actually sold, so there was zero market risk. That sealed the deal for me - the operational simplicity plus eliminating any market timing risk made the in-kind transfer the clear winner. Just make sure your custodian supports in-kind transfers for the specific securities you hold. Some have restrictions on certain types of investments.

Can someone explain how capital gains are currently taxed vs regular income? This seems to be at the heart of the whole billionaire tax debate but I'm confused about the actual numbers.

As someone who works in financial planning, I think it's important to note that Buffett's advocacy for higher taxes on the ultra-wealthy isn't just about fairness - it's also about economic stability. When wealth becomes extremely concentrated, it can reduce consumer spending (since wealthy individuals save a higher percentage of their income) and limit economic mobility for everyone else. The current system essentially subsidizes wealth accumulation through preferential capital gains treatment while heavily taxing work through payroll and income taxes. A 60% marginal rate on very high incomes would likely only affect a few thousand Americans but could generate significant revenue for infrastructure, education, and other investments that benefit the broader economy. What's particularly interesting is that many billionaires like Buffett, Gates, and Munger have argued that higher taxes wouldn't significantly impact their standard of living or business decisions. When you have $100 billion, paying an extra $1-2 billion in taxes doesn't change your day-to-day life, but it could fund programs that help millions of Americans build wealth and contribute more to the economy.

Still waiting on mine from AMN too! Called payroll yesterday and they said they're having "technical difficulties" with their tax document system. Supposedly should be resolved by end of week. Meanwhile I'm just sitting here watching everyone else file their returns 😤

Just got off the phone with AMN's payroll department and they confirmed what others are saying - they had a major system outage that affected W2 processing. The rep told me all outstanding W2s should be available in the employee portal by Friday. If you still don't see yours by Monday, she said to call the dedicated tax documents line at their corporate office. Hang in there everyone, we're almost through this! 🤞

Don't panic - you're going to get through this! I know receiving that 2800c letter feels overwhelming, but it's actually the wake-up call you needed to break this cycle. Here's what you need to focus on immediately: **First priority**: Call the IRS or use their online payment system to set up a comprehensive payment plan for ALL your outstanding balances ($2,000+ from 2022 and $4,700 from 2023). Don't let these sit - the interest and penalties keep adding up daily. **Second**: Accept that your take-home pay is about to drop significantly. Start living on the reduced budget NOW, before the withholding kicks in. Cut unnecessary expenses and prepare mentally for the adjustment. **Third**: This is actually going to save you money long-term. Instead of owing $4,000-5,000 every April plus interest and penalties, you'll have your taxes properly withheld throughout the year. The 2800c isn't punishment - it's the IRS saying "we're going to make sure this doesn't happen again." Your employer will receive instructions on exactly how much to withhold, and they must comply. I've seen people in much worse situations turn this around. You're filing your returns on time, you're working steadily, and you're taking this seriously. Those are all positive signs. This time next year, you'll probably be getting a small refund instead of owing thousands. Stay strong and take it one step at a time!

I'm really glad you posted about this because withholding compliance issues are more common than people think, and the 2800c letter can be really scary when you first receive it. Everyone here has given you excellent advice about what the letter means and how to handle it. I just want to emphasize a few key points that might help you feel more in control of the situation: **The timing works in your favor**: Since you're still relatively early in your career and caught this pattern before it went on for a decade, you're in a much better position to recover than many people who face these issues. **Your compliance history matters**: The fact that you've been filing your returns on time every year is huge. The IRS treats people who file but owe money very differently than people who don't file at all. You're not looking at criminal penalties or anything like that. **This creates forced financial discipline**: I know the reduced take-home pay is going to hurt initially, but many people find that having proper withholding actually improves their overall financial planning. No more feast-or-famine cycle where you get used to higher paychecks all year only to face a massive tax bill in April. One practical suggestion: if your company offers direct deposit, consider setting up automatic transfers to a separate savings account for the amount your paychecks are decreasing. That way, you'll psychologically adjust to the new amount while building an emergency fund with the "difference." You're taking responsibility and asking for help - those are the hardest parts. The rest is just paperwork and patience.

This is incredibly helpful! I've been refreshing my transcript every day like it's going to magically update with new info 😂 I'm seeing codes 150, 570, and 768 on mine - so it looks like my return processed, EIC was applied, but now it's under the PATH Act hold. At least now I know the 570 isn't something bad, just the mandatory waiting period. One question though - has anyone noticed their transcript updating at specific times of day? Mine seems to change overnight but I can never figure out the exact timing. Also wondering if the codes appear in any particular order or if it's random? Really appreciate you taking the time to break all this down in terms we can actually understand! Way better than the IRS's cryptic "your return is being processed" message that tells us absolutely nothing 🙄

This is exactly what I needed! I've been checking my transcript daily and getting completely overwhelmed by all these random codes. Just looked at mine and I see 150, 806, 766, and 570 - so it sounds like my return processed, withholdings applied, ACTC credited, but now it's under review. Quick question - does the order these codes appear matter at all? Mine seem to be all jumbled up by date rather than any logical sequence. Also, for those with code 766 (ACTC), have you noticed if there's usually a specific dollar amount shown or is it just the code? The PATH Act waiting is absolutely killing me but at least now I understand what's actually happening instead of just staring at that useless "still processing" message on WMR. Thanks for putting together such a comprehensive guide - this should honestly be pinned at the top of the sub! 🙌