Edward, I'm so sorry for your loss. Losing your mother unexpectedly at 64 is heartbreaking, and discovering this substantial cash inheritance while you're still grieving adds so much complexity to an already difficult time. Reading through all the excellent advice here, I want to emphasize something that might help ease your worry: what you've described is actually a fairly common situation that banks and estate professionals encounter regularly. Your mother's decision to keep cash in a safe deposit box, while surprising to you, was likely her way of ensuring her children would have something secure and immediately accessible. The key points I'd stress are: **You're doing the right thing by asking** - Seeking guidance before acting shows you want to handle this properly, which is exactly the right approach. **The bank will be prepared for this** - With your executor documentation, death certificate, and safe deposit box paperwork, they'll know exactly how to process this transaction. The CTR filing is routine paperwork, not a red flag. **Take your time** - Don't feel pressured to rush the deposit or distribution. Using an estate account initially and consulting with a professional about your state's requirements will give you peace of mind. Your mother clearly loved you and your sister and wanted to provide for you. By handling this inheritance responsibly and transparently, you're honoring her intentions while protecting your family's interests. This discovery, while unexpected, is ultimately a gift she left for you both. Wishing you strength during this difficult process.

Edward, I'm so deeply sorry for the loss of your mother. What an incredibly difficult situation to navigate while you're still processing your grief. I wanted to share that your story really resonated with me because I went through something very similar with my grandmother's estate two years ago. We found about $52,000 in cash hidden in various places throughout her home - some in books, some in old coffee cans, and a large portion in an old suitcase in her closet. Like you, we had no idea she had been keeping that much cash on hand. The advice you've received here is spot-on. I made the mistake initially of depositing some of it directly into my personal account, thinking it would be simpler, but my attorney quickly corrected me and had me move everything through the estate account instead. It really does create a much cleaner paper trail and shows proper fiduciary responsibility. One thing that helped me tremendously was preparing a simple one-page summary for the bank explaining exactly how and where we found the money, along with photos and a timeline. The bank manager actually thanked me for being so thorough - she said most people in similar situations come in flustered and unprepared, which sometimes raises unnecessary questions. Your mother's foresight in making you a co-lessee on the safe deposit box shows she was thinking ahead, even if she didn't share all the details. That note mentioning "something for the kids" is really touching evidence of her love and planning for your future. Take your time with this process. There's no rush, and handling it properly will give you peace of mind for years to come.

This has been such a helpful thread! I'm in a similar situation with a Wells Fargo Business Platinum card and was dreading the higher fee. After reading through all these responses, I decided to call Pay1040 directly to confirm. They told me the same thing - any card with "Business" printed on it gets the 2.89% rate, period. But the rep also mentioned something that might help others: some of the other IRS-approved payment processors (like PayUSATax and ACI Payments) have slightly different fee structures. PayUSATax charges 1.99% for credit cards regardless of whether they're business or personal. So even though it's still higher than the 1.75% personal rate on Pay1040, it's lower than the 2.89% business rate. Might be worth shopping around between the different processors if you're set on using a business card. The IRS website lists all the approved processors so you can compare their fee schedules.

I actually just went through this exact scenario with my Capital One Spark Business card! Unfortunately, yes - it will definitely be charged the higher 2.89% commercial rate. I learned this the hard way when I made my Q4 estimated payment last month. What really helped me was doing the math on whether the rewards still made it worthwhile. My Spark card gives me 2% cash back on everything, so with the 2.89% fee, my net cost was only 0.89%. Compare that to using a personal card with no rewards at 1.75% fee - I actually still came out ahead with the business card despite the higher processing fee. But here's a tip that might save you even more: I discovered that if you have a business checking account, you can use IRS Direct Pay for free with an ACH transfer. No fees at all! The only downside is you miss out on the credit card rewards, but for larger tax bills, the fee savings can be substantial. Just make sure you have enough time for the ACH to process - it takes a few business days unlike the instant processing with credit cards.

This is a great strategy! I'm in a similar situation with W2 income and side business income. One thing to keep in mind is that your Solo 401k contribution limit will be based on your net self-employment income (after expenses and self-employment tax), not the gross $27k. The calculation gets a bit tricky - you'll need to factor in half of your self-employment tax as a deduction. So if your net profit is $27k, your actual contribution limit will be somewhat less. The employee contribution portion is limited to 100% of compensation, and the employer portion is around 20% of net self-employment income after adjustments. Also, make sure to set up the Solo 401k before the end of the tax year if you want to make contributions for that year. The account needs to be established by December 31st, though you have until the tax filing deadline (plus extensions) to actually make the contributions. Rolling over your old 401ks into the Solo 401k is definitely a smart move for keeping your Backdoor Roth strategy clean. Just make sure whatever provider you choose has good investment options and reasonable fees since you'll potentially be consolidating a lot of money there.

This is exactly the kind of strategic retirement planning that can really pay off in the long run! Your approach of using the Solo 401k to keep your Traditional IRA balance at zero for clean Backdoor Roth conversions is spot on. One additional consideration I'd mention is loan provisions. Unlike Traditional IRAs, Solo 401ks allow you to take loans against your balance (up to 50% or $50,000, whichever is less). This can provide additional flexibility if you ever need access to funds before retirement age, though obviously it should be used carefully. Also, since you're consolidating multiple old 401ks, this might be a good time to review and optimize your overall asset allocation. Having everything in one place makes it much easier to rebalance and avoid overlap in your investment strategy. The fact that your current employer doesn't offer a 401k actually simplifies things significantly - you won't have to worry about coordinating contribution limits across multiple plans or dealing with the complexity of multiple plan administrators.

I'm a CPA who specializes in self-employment tax issues, and I want to clarify something important that might be getting lost in this discussion. The core issue isn't necessarily that you've exceeded contribution limits - it's that you cannot make employer contributions to BOTH a SEP-IRA and Solo 401k for the same business in the same tax year. This is a common misconception that trips up many self-employed individuals. Here's what's happening: You can make the $23,000 employee deferral to your Solo 401k (that's fine), but the $28,500 you put into the SEP-IRA counts as an employer contribution. If you also made any employer contributions to your Solo 401k beyond the employee deferral, then you've violated the rule about having multiple employer-sponsored plans for the same business. The solution is exactly what others have suggested - remove the excess contributions from one account before your tax deadline. I'd recommend keeping the Solo 401k and removing everything from the SEP-IRA, since the Solo 401k gives you more flexibility and higher contribution limits going forward. Contact your SEP-IRA custodian immediately to request a complete distribution as an "excess contribution removal." Make sure they code it properly on the 1099-R. You have until your tax filing deadline (including extensions) to fix this without major penalties.

I've been following this discussion and wanted to share my experience as someone who made a similar mistake last year. The advice about removing the SEP-IRA contributions is spot on - I had to do the exact same thing. When I called my custodian to request the excess contribution removal, I specifically said "I need to remove excess contributions due to having multiple employer-sponsored retirement plans for the same business." They knew exactly what I was talking about and had a standard form for this situation. The key thing that helped me was getting everything in writing from the custodian before they processed the removal. They sent me a letter confirming that the distribution would be coded as an excess contribution removal on the 1099-R (code P), not as a regular distribution. This documentation was crucial when I filed my taxes. One more tip: when you call, ask them to calculate any earnings on the excess contributions that also need to be removed. The IRS requires that both the excess contributions AND any earnings attributable to those contributions be distributed. The earnings portion will be taxable, but removing everything properly avoids the ongoing 6% penalty. You're definitely on the right track focusing on the Solo 401k going forward. It really is the better option for self-employed folks who want to maximize their retirement savings in one account.

Just wanted to add one more important point that I learned the hard way - make sure you have good records of your home improvements before you calculate your basis! I almost missed out on about $15,000 in basis adjustments because I didn't keep receipts from a kitchen renovation I did 4 years ago. For the $250k exclusion to work properly on Form 8949, you need to calculate your gain correctly first (sales price minus basis). Your basis includes your original purchase price PLUS qualified improvements like renovations, additions, new roofing, etc. The higher your basis, the lower your gain, and the more likely you'll stay under the $250k threshold. I had to dig through old credit card statements and contractor invoices to reconstruct my improvement costs. If you're in the same boat, don't forget about things like new HVAC systems, flooring, bathroom remodels, deck additions, and even some landscaping costs. These can add up to tens of thousands in additional basis. The IRS Publication 523 has a good list of what qualifies as improvements vs. repairs. Improvements add to your basis, but regular maintenance and repairs don't.

I went through this exact situation last year and want to emphasize how crucial it is to get this right! Emma, you're absolutely on the right track questioning whether that $187k should show up on line 13 of Schedule 1 - it definitely shouldn't if your entire gain qualifies for the exclusion. The key thing that tripped me up initially was thinking I could just ignore the 1099-S since my gain was under $250k. That's wrong! You must report it, but here's the correct process: 1. Complete Form 8949 showing your sale details 2. In column (g), enter code "H" 3. In column (h), enter your excluded amount (up to $250k for single filers) 4. This flows to Schedule D, which should show zero taxable gain 5. Nothing should appear on Schedule 1, line 13 if fully excluded I also learned that keeping detailed records of home improvements is absolutely critical for calculating your basis correctly. I found an additional $12,000 in improvements I had forgotten about, which reduced my gain even further. Don't skip reporting the sale just because it's excluded - the IRS expects to see this transaction on your return since you received a 1099-S. Getting this wrong could trigger an audit or notices down the road.