This is so helpful to hear from someone who does this professionally! So I guess the next question is - should I file an amended return just to correct that one "no" to a "yes" even if it doesn't change anything tax-wise? Or is that overkill?

Filing an amended return just to change a "no" to "yes" when there's no tax impact would be complete overkill. The IRS is concerned with collecting the correct amount of tax, and in your case, the correct amount is exactly what you already reported. If you had missed reporting actual income or deductions that changed your tax liability, then yes, you'd want to amend. But for an informational question with no financial impact? Save yourself the hassle. Just remember next year to answer "yes" to that question if you still own those stocks.

Same! I claimed the wrong education credit once and the IRS sent me a very scary letter. But they were actually pretty reasonable about fixing it. I just had to pay back the difference plus a small interest amount.

Thanks for mentioning this! My tax payment is around $12k so hopefully that's under the limit, but I'll definitely check my account settings to make sure. Do you know if there are monthly limits too or just daily?

There are monthly limits as well, which are typically 3-4 times the daily limit in my experience. For a $12k payment you should be fine unless you've already made other large transfers this month. You can check your specific limits by logging into your Marcus account, going to the profile section, and looking at "Transfer Limits." It's usually shown right there, or you might need to click on account details depending on if you're using the app or website.

This is so true! I freaked out last year thinking my payment didn't go through, even called Marcus support. They explained that tax payments process differently than regular transfers. As long as you got the confirmation email from TurboTax, you should be good.

This is super helpful! I was just checking my Marcus account and didn't see anything pending yet, so was starting to worry. I'll give it a day before I start panicking. Thanks for sharing that!

Yikes, that's scary. Do you know if the payment plan stops the penalties from accumulating? I'm definitely calling them this week.

The payment plan doesn't completely stop penalties and interest, but it does prevent further collection actions like liens and levies as long as you keep making payments. The failure-to-pay penalty drops from 0.5% to 0.25% per month when you're on a plan, which helps a little. Interest (currently around 5%) continues regardless. Still way better than ignoring it though - I learned that lesson the hard way!

This is great advice! I got first-time abatement for a similar situation. Just call the IRS and specifically ask for "first-time penalty abatement" - many agents won't offer it unless you specifically request it.

1 I didn't switch jobs, but I did get a significant raise in March 2024. Maybe that affected the calculations? My salary went from about $75,000 to $82,500, so it was a pretty big jump. Could that have messed up the withholding calculations? I'm wondering if my employer's payroll system just didn't adjust properly.

1 I did start maxing out my 401k contributions this year, which is about $22,500. And I also contribute to an HSA ($3,850) and have health insurance premiums taken out pre-tax (about $4,500 annually). So that's around $30,850 in pre-tax deductions. Would that be enough to cause such a dramatic reduction in withholding? My total federal withholding for the entire year was only $1,250 which seems incredibly low even with those deductions.

Just double checked and it's definitely code G in Box 7, and Box 4 shows $0 withholding. Sounds like I'm all good then? Seems like everything was handled correctly by the financial institution.

Yes, with Code G and $0 withholding, you're 100% fine to leave your return as is. That's the perfect scenario for a non-taxable rollover. The Code G tells the IRS this was a direct rollover to a qualified plan, so their system should recognize it as non-taxable even though you didn't include the form. Just file the 1099-R away with your tax records and you're all set!

Don't stress about it! As long as it shows $0 taxable and has the right code (usually G for rollover), you're fine. I work at an accounting firm and see this all the time - we never amend for properly coded $0 rollovers.

Phew, that's a relief! Mine shows code G and zero taxable amount too. Was worried I'd have to pay someone to amend my return. Tax season is stressful enough without these last-minute forms showing up!