Double-check what your current 401k plan allows before assuming you can roll this money in! I had a similar forced distribution and my current employer's 401k didn't accept rollovers from terminated plans - only direct transfers from active plans. I ended up opening an IRA instead, which was actually better in the long run because I have way more investment options now. Plus, IRAs typically have lower fees than employer 401ks.

I went through this exact situation 3 years ago when my old company terminated their plan with Principal Financial. The 60-day rollover deadline is absolutely critical - don't delay on this! One thing that caught me off guard: make sure you understand the difference between "direct" and "indirect" rollovers. What you're dealing with is an indirect rollover (they cut you a check), which has that 60-day deadline and the 20% withholding issue. If you had been able to do a direct rollover (trustee-to-trustee transfer), there would be no withholding and no tight deadline. Also, keep detailed records of EVERYTHING - the dates you received notices, when you got the check, when you deposited it into your new account. The IRS can be very strict about the 60-day rule, and while there are some exceptions for delays beyond your control, you don't want to rely on those. One more tip: when you open your IRA, ask the provider to expedite the account setup and clearly tell them this is for a rollover with a deadline. Most major brokerages (Fidelity, Vanguard, Schwab) can get you set up within 24-48 hours if you explain the urgency.

I'm in the exact same situation - verified my identity on February 28th and still waiting. This whole process is so stressful! Reading through everyone's experiences here is actually really helpful though. It sounds like the 9-week timeline is unfortunately pretty realistic, but at least some people are getting their refunds earlier. I've been checking Where's My Refund obsessively every day (sometimes multiple times a day, not gonna lie) and it's been stuck on "still processing" this whole time. Based on what others have shared, it seems like it stays that way until suddenly it changes to approved. Thanks for asking this question - it's reassuring to know I'm not the only one going through this waiting game. Fingers crossed we both get our refunds sooner rather than later!

Wow

This is such a common issue during tax season! I work as a tax preparer and see this exact problem multiple times every year. The key thing to understand is that your tax software is incorrectly expecting a 1095-A form when you don't actually need one. Since the Marketplace confirmed you never had their coverage and you only have employer insurance (1095-C), this is 100% a software configuration issue. Here's my step-by-step fix: 1) Go to your health insurance section and look for ANY question about "premium tax credits" or "advance payments" - these often get auto-populated incorrectly, 2) Make sure you select ONLY "employer-provided coverage" and clear any checkboxes related to Healthcare.gov or state exchanges, 3) Look for a section about "reconciling advance payments" - if this exists in your software, make sure it's disabled since you never received advance payments. If you're still getting rejected after checking all these areas, the nuclear option is to start a completely fresh return - sometimes the software gets confused with cached data. Since today is the deadline, consider filing Form 4868 for an automatic extension to October 15th if you can't resolve this immediately. This gives you breathing room to fix it properly without penalties!

This is definitely a tax software issue, not an IRS problem! Since you have a 1095-C from your employer and the Marketplace confirmed you never had coverage with them, you shouldn't need a 1095-A at all. The rejection is happening because somewhere in your tax software you've accidentally indicated you had Marketplace insurance. Go back to the health insurance section and look for any questions about "premium tax credits," "advance premium tax credit payments," or anything mentioning Healthcare.gov - these often get checked by mistake. Make sure you're only selecting employer coverage options. If you can't find the issue quickly, consider filing Form 4868 for an extension since it's already April 15th. That will give you until October to sort this out without penalties. This is a very common and fixable problem!

Don't forget to consider quarterly estimated tax payments! If you're splitting $38k, each making $19k from the content creation, you both likely need to be making quarterly payments to avoid underpayment penalties. This bit me hard my first year!

I was in almost the exact same situation with my podcast! After reading through all these responses, I'd strongly recommend getting clarity on whether you're actually a partnership before doing anything else. Here's what I learned the hard way: if you and your friend are both actively creating content together and splitting profits 50/50, the IRS will likely consider you a partnership regardless of whose name the income comes under. This means you should be filing Form 1065 (partnership return) and each getting a K-1, not issuing 1099s. The key test is whether you're both contributing to the business activities (sounds like yes) and sharing profits/losses (definitely yes). If that's the case, the 1099-NEC route others mentioned could actually get you in trouble later. I'd suggest using one of the services mentioned here (like Claimyr to talk directly to the IRS, or taxr.ai to analyze your specific situation) to get a definitive answer before you file anything. Better to spend a little money upfront than deal with an audit later like Diego mentioned above!

I filed on February 12th and my transcript shows code 570 dated April 8, 2024. Does that mean I won't see my refund until after that date? I was really counting on having this money by the end of March.

Just wanted to add my experience from this tax season - I filed on February 28th and was obsessively checking my transcript every few days. The Account Transcript is definitely the way to go, but don't panic if you see a 570 code initially. Mine showed up on March 15th and I thought something was wrong, but it was just routine verification. The 571 code (hold released) appeared exactly 21 days later, followed by the glorious 846 code with a deposit date. One thing I learned is that the IRS updates transcripts overnight, usually between Tuesday night and Wednesday morning, so that's the best time to check for changes. Also, if you're using direct deposit, the money often hits your account 1-2 days BEFORE the date shown next to the 846 code, which was a nice surprise!