Hey OP, any update? Did you manage to get through to them?

I went through the exact same thing last year! The IRS letter never showed up, and I was panicking about not being able to file my taxes. Here's what worked for me: I called the IRS early in the morning (like 7:30 AM) and got through pretty quickly. They couldn't give me the verification code over the phone, but they were able to verify my identity using other methods - they asked me questions about my previous tax returns, addresses, and some financial info. They then sent a new letter to my current address, which arrived within 10 business days. Make sure you have your Social Security card, driver's license, and last year's tax return handy when you call. Also, double-check that they have your correct mailing address! Good luck - you got this! 💪

Don't forget to check what your 401k money is actually invested in! I was contributing to get my employer match for years before I realized my money was sitting in a default money market fund making almost nothing. When you increase your contribution, make sure you're invested in something appropriate for your age. At 29, you probably want to be mostly in stock funds for long-term growth. Most 401k plans have target date funds that automatically adjust your investments as you get closer to retirement age.

Great question! You're already doing the smart thing by getting that full 5% match - that's literally free money. At 29, you have time on your side which is huge for compound growth. Given your situation, I'd suggest gradually increasing your 401k contribution to around 10-12% of your salary if you can swing it. With a $62k income, that extra 5-7% would be about $3,100-$4,340 more per year, but remember it reduces your taxable income so your take-home won't drop by the full amount. The key is finding balance - your 4.2% student loan rate isn't terrible, so it's not an emergency to pay it off early. I'd prioritize the 401k increase first since you're in the 22% tax bracket and getting that deduction now makes sense. Plus, starting a Roth IRA for your house fund (as others mentioned) gives you flexibility since you can access contributions penalty-free. Don't try to do everything at once though. Maybe bump your 401k to 8% first, see how it feels budget-wise, then consider adding a small Roth IRA contribution later. The most important thing is consistency - even small increases in your contributions now will make a massive difference over the next 35+ years until retirement.

The IRS is like a slow-moving train this year - once it's on the tracks, it'll get to the station, but nobody can tell you exactly when. I had the exact same codes appear on 2/10, called on 2/15, got the same "still processing" line, then magically had my DDD appear on 2/17 with the money in my account on 2/22. It's like they have a script they're required to read regardless of what your account actually shows. The codes you have are like seeing the train on the horizon - it's definitely coming, but the conductor won't announce the arrival time until it's pulling into the station.

Your situation sounds very similar to mine from last year! I was also a cycle 0605 filer and got those exact same codes about a week before my refund actually hit my account. The IRS phone agents are trained to say "still processing" until the very last step when the 846 code appears with your direct deposit date. It's frustrating because technically your return IS processed - they're just waiting to release the funds due to PATH Act requirements. I'd recommend checking your transcript early Friday morning since that's when most 0605 updates happen. The "significant movement" comment from the agent is actually encouraging - they usually don't mention timelines unless something is about to happen. Hang in there, you're almost at the finish line!

Does anyone know if the Solo 401k contribution limits would apply in the OP's situation even if they could somehow qualify? I've been trying to understand if the $66,000 limit (for 2023) applies differently when you have an S-Corp vs just being self-employed.

Your situation is exactly why I always recommend getting a second opinion on complex retirement plan setups. The controlled group rules are incredibly strict, and I've seen too many business owners get burned by setting up non-compliant plans. From what you've described, your CPA's advice about a Self-Directed 401K at just the S-Corp level is almost certainly incorrect. The IRS doesn't care about the technical legal separation between your LLC and S-Corp - they look at the economic reality of common ownership and control. Since you own both entities and there's a clear business relationship (guaranteed payments flowing between them), they're going to be treated as a single employer for retirement plan purposes. This means any qualified retirement plan would need to include all eligible employees across both the LLC and S-Corp. You can't cherry-pick which employees to include just because they're paid by different entities. I'd strongly recommend getting this sorted out before moving forward. The penalties for maintaining a non-compliant qualified retirement plan can be severe, including plan disqualification and immediate taxation of all contributions. Better to get it right from the start than try to fix it later.

Pro tip from someone who deals with this every year (tax accountant here, though not YOUR tax accountant): Most tax refund cards have a bill pay feature that lets you "pay" your own bank account as if it were a bill. Clever workaround! 😉 Just add your checking account as a payee using your account/routing numbers. Usually has higher limits than direct transfers and sometimes lower fees too. The banking system doesn't know or care that you're paying yourself.

I totally understand your frustration with the prepaid card situation! I went through something similar last year. Here's what worked for me: First, call the customer service number on the back of your card to check your daily/weekly transfer limits - they're usually higher than ATM limits. Most cards allow $2,000-$5,000 per day for ACH transfers to your bank account through their online portal or mobile app. The transfer usually takes 1-3 business days and costs around $1-5. If you haven't activated online access yet, do that first - you'll need the card number, security code, and usually some personal verification info. Also double-check that the IRS has your correct bank account info for future refunds by updating your direct deposit information on IRS.gov. Hope this helps!