Don't forget that contributing to a Traditional 401k (Solo or otherwise) reduces your Modified Adjusted Gross Income (MAGI), which can help you stay under the Roth IRA income limits if you're borderline. But Roth 401k contributions don't reduce your MAGI. This gave me a nice strategy: I contribute enough to my Traditional Solo 401k to get my MAGI just under the Roth IRA limit, then max out my Roth IRA, and if I have more to save, I put it back into my Solo 401k (either traditional or Roth portion depending on my tax situation). Just another angle to consider for tax optimization!

This is such a great question and I'm glad to see so many helpful responses! I went through this exact same confusion last year as a freelance graphic designer. One thing I'd add that hasn't been mentioned yet - make sure you establish your Solo 401k by December 31st of the tax year you want to contribute for, even though you have until the tax filing deadline (plus extensions) to actually make the contributions. I almost missed this deadline thinking I could set it up when I filed my taxes. Also, if you're planning to do this strategy long-term, consider working with a fee-only financial advisor who specializes in self-employed clients. The tax savings and growth potential from properly maximizing both accounts can easily justify the cost, especially as your income grows. I wish I had started this dual approach earlier - the compound growth difference is significant over time. The backdoor Roth strategy mentioned earlier is also crucial to understand if your income fluctuates. Some years I'm under the Roth limit, other years I'm over, so having that flexibility has been a game-changer for my retirement planning.

Just want to point out that while paying off student loans doesn't count for the Form 8815 savings bond interest exclusion, there IS a different benefit: up to $2,500 of student loan interest you pay is potentially tax-deductible each year (depending on your income). So once your loans start accruing interest in 2027, you'll likely get some tax benefit from that.

Great question about Form 8815! You're absolutely right to be thinking strategically about this money while you have time before interest kicks in. Since student loan repayment doesn't qualify for the savings bond tax exemption, I'd focus on maximizing your return through 2027. Given your timeline, you might want to consider laddering some shorter-term Treasury bills or CDs to match when you'll need the money. For example, you could put some in 1-year, 2-year, and 3-year instruments so they mature as your loan payments ramp up. One thing to keep in mind: even though you can't use the education expense angle for tax benefits, the interest you'll eventually pay on those student loans (starting in 2027) will likely be tax-deductible up to $2,500 per year, assuming your income stays within the limits. So there's still a tax benefit down the road, just not from the investment side. Have you considered what your expected income will be when the loans start accruing interest? That could help you decide between focusing on maximizing returns now versus other strategies.

bruh these IRS clowns need to get it together fr. everyone i know is stuck with some kinda delay this year 🤡

I had the exact same 570 code last year and it was nerve-wracking! In my case, it turned out the IRS just needed to verify my employer's W-2 information matched what they had on file. The whole thing resolved in about 3 weeks without me having to do anything - they just needed time to cross-reference their records. Keep checking your transcript every few days for updates, and definitely watch your mail for any notices. The good news is that once it clears, your refund usually processes pretty quickly after that. Hang in there! 🤞

I'm curious which state you're in? Some states recognize common-law marriage, and the IRS will accept joint filing if you're considered married under state law. States that recognize common-law marriage include Colorado, Iowa, Kansas, Montana, Oklahoma, Rhode Island, Texas, and Utah (plus DC). But even in those states, you typically need to present yourselves as married, live together, and intend to be married - not just be engaged. And most states don't recognize common-law marriage at all.

This is a really important question to get right! I'm a tax professional and I can confirm what others have said - unmarried couples absolutely cannot file jointly, regardless of living situation or engagement status. This is one of the most fundamental IRS rules. What concerns me is that a tax professional advised you to do this. Either there was a miscommunication about which tax year you were discussing, or they're suggesting something that could get you in serious trouble with the IRS. Filing jointly while unmarried is considered filing a false return, which can result in penalties, interest, and potential fraud charges. Your best options as an unmarried couple are: 1. Both file as Single 2. One files as Head of Household if they have a qualifying dependent 3. One claims the other as a dependent if income/support tests are met I'd strongly recommend getting a second opinion from another tax professional before proceeding. The savings aren't worth the risk of IRS penalties down the road.

Has anyone dealt with this issue with a multi-member LLC that had no activity? Same situation basically but our LLC had 3 partners yet zero transactions ever. Do we need to file any partnership returns?

Just wanted to share my experience with a similar situation. I had an LLC that I formed but never used for about 4 years. When I finally decided to dissolve it, I discovered a few things that might help you: 1. Federal level: Since you had zero activity, you likely don't need to file any federal tax returns. However, if you obtained an EIN, it's good practice to send a letter to the IRS notifying them you're closing the business. 2. State level: This is where it gets tricky. Most states require annual reports and franchise taxes regardless of activity. I ended up owing about $2,000 in back fees and penalties to my state just for having an active LLC registration. 3. Check if your LLC was administratively dissolved: Some states automatically dissolve LLCs that don't file required reports for a certain period. You might want to check your state's business entity database to see your LLC's current status. My advice would be to contact your state's Secretary of State office first to understand your specific obligations before proceeding with dissolution. Each state has different rules and penalties for inactive businesses.