Something nobody's mentioned yet - if you have self-employment income (even from a side gig), you could open a Solo 401k and roll your pre-tax IRA money into that. Then you'd be able to do clean backdoor Roth conversions with your post-tax IRA contributions. I did this last year when I was consulting on the side, and it worked perfectly. The Solo 401k can often have better investment options than an employer 401k too, since you get to choose the provider. I went with Fidelity and have access to all their low-cost index funds with no admin fees.

Great breakdown of your situation! You're absolutely right about the pro-rata rule making backdoor Roth conversions less attractive with your current mix. A few additional thoughts: Since you're 42 with 20 years until retirement, you might consider doing small annual Roth conversions during years when your income is lower (job changes, sabbaticals, etc.). Even though you'd pay tax on 85% of each conversion, spreading it over multiple years could keep you in lower tax brackets. Another angle to consider: if you expect to be in a lower tax bracket in retirement, keeping the Traditional IRA as-is might actually be optimal. You'd continue tracking basis with Form 8606, and your future withdrawals would be partially tax-free based on the pro-rata rule you mentioned. For the earnings question - no, earnings on your post-tax contributions are not tax-free when withdrawn. Only your actual post-tax contribution amounts (your basis) come out tax-free. The IRS treats all earnings as taxable regardless of which contributions generated them. The 401k rollover strategy others mentioned is solid if your plan allows it, but make sure to factor in any differences in investment options and fees when deciding if it's worth it.

According to Internal Revenue Manual 5.19.17.2, "The offset of refunds to pay tax liabilities is not prohibited while a taxpayer is in CNC status." I went through this myself. I was placed in CNC status in 2022, filed my return in February 2023, and my entire $2,800 refund was applied to my outstanding tax debt. The IRS considers refund offsets as passive collection actions that are separate from the active collection actions prohibited by CNC status. I understand how frustrating this can be when you're already in financial hardship.

I'm currently going through this exact situation and can confirm what others have said - CNC status won't protect your refund from offset. I was placed in CNC status in September 2023 due to unemployment, but when I filed my 2022 return last April, they still took my entire $1,847 refund. The frustrating part is that the CNC determination letter specifically states they won't pursue collection activities, but apparently refund offsets don't count as "active" collections. I called the Taxpayer Advocate Service to see if there were any options, and they explained that the offset happens automatically through the Treasury Offset Program before the IRS even processes your return. My advice would be to adjust your withholdings going forward so you owe a small amount instead of getting a refund - that way there's nothing for them to take.

I mailed my state return in February last year and it took exactly 10 weeks to process. I got my refund 2 weeks after that. So 12 weeks total. My federal e-file was done in 10 days. This year I made sure to find a tax preparer who could e-file for both states. Cost me $75 more but worth it to avoid the wait. If you need that money soon, don't count on it arriving quickly. Paper processing is still stuck in the stone age.

I'm dealing with this exact situation right now! Filed my federal electronically in January and got my refund in 8 days. Had to mail my second state return because they don't accept e-filing for part-year residents. It's been 7 weeks now and still nothing - not even an acknowledgment that they received it. Called their customer service line twice and waited over an hour each time just to be told "normal processing time is 8-12 weeks for paper returns." Really frustrating when you see how fast the electronic systems work. Next year I'm definitely finding a way to avoid paper filing, even if it means paying extra fees. The peace of mind and faster processing is worth it. For anyone in a similar boat - I'd recommend keeping copies of everything and maybe sending it certified mail next time so you at least have proof of delivery.

According to N.J.A.C. 18:35-6.1, the Division of Taxation has 90 days to process returns before they're required to pay interest on refunds. That's why they don't prioritize updating the status checker. I filed on January 20th, couldn't check status until March 1st, but received my refund on March 3rd. Their internal processing is actually efficient - it's just their public information system that's outdated. If you filed correctly, your refund will come within the statutory timeframe.

I'm dealing with something similar - filed my NJ return on February 8th and still can't check status online. What's particularly frustrating is that I got my federal refund three weeks ago, but NJ's system still shows nothing. I called yesterday and waited 2.5 hours just to be told "your return is in process" with no timeline. Since you mentioned being on a work visa, have you considered reaching out to a tax professional? They might have better insight into whether visa status affects NJ processing times or if there are additional verification steps for non-citizens. At this point I'm just hoping it processes before I need to make quarterly payments in April!

Check your transcript online if you can access it. Sometimes the letter contents are viewable there even if the physical copy went to wrong address

This is frustrating but definitely fixable! I went through something similar last year. Here's what worked for me: 1) Call the IRS immediately at 800-829-1040 and explain the situation - they can usually expedite a reissue to your correct address, 2) File Form 8822 online or by mail to update your address officially, 3) Keep documentation of everything (dates you called, reference numbers, etc). The whole process took about 2-3 weeks for me once I got everything sorted. Don't panic - this happens more often than you'd think!