15 Does anyone know if the 401k limit includes employer matching? My company matches 5% of my salary, not sure if that counts toward the $24,500 limit.

This is such a helpful thread! I've been maxing out my 401k for years but never realized I could also do the full Roth IRA contribution on top of it. I always assumed there was some combined limit that would prevent me from doing both. Just to make sure I understand correctly - if I'm 28 years old and make $95,000 annually, I can contribute: - $24,500 to my 401k - $7,500 to my Roth IRA - And my employer's 4% match doesn't count against either of those limits Is that right? This could be a game-changer for my retirement savings strategy. I've been leaving money on the table by not opening a Roth IRA thinking I was already "maxed out" with just my 401k contributions.

My amended return took exactly 18 weeks and 3 days to process last year. The IRS received it on March 7, 2023, and I received my refund on July 14, 2023. The system updated at the 6-week mark, the 12-week mark, and then finally at the 18-week mark. The refund was $4,327 less $43.21 in interest penalties for a net of $4,283.79. For business planning purposes, I'd recommend setting a calendar reminder for Week 16 to check the status again, and don't make any financial commitments requiring this money until Week 20.

I'm going through something similar right now - filed my amended return about 8 weeks ago for some missed business expenses I discovered. The waiting is definitely nerve-wracking when you're trying to plan business purchases! From what I've learned lurking in various tax forums, the 16-20 week timeline seems pretty accurate these days. One thing that's helped me is setting up a monthly calendar reminder to check the "Where's My Amended Return" tool rather than obsessively checking it weekly. Also, I've started looking into alternative financing options for my business needs just in case the refund takes longer than expected. It's frustrating, but having a backup plan has given me some peace of mind while I wait for the IRS to do their thing.

Not a tax professional, but I've owned an S Corp for 10+ years. One thing to consider - if your business consistently has $350k cash on hand, you might actually be OVER-paying taxes by keeping too much in the company. The IRS sometimes looks at excessive retained earnings as a sign you're trying to avoid taking distributions or salary.

I'd definitely recommend getting professional advice from a CPA who specializes in S-Corps before making any large transfers. While the other commenters are right about distributions being legal, there are several factors to consider beyond just the tax implications. First, make sure you're truly taking a "reasonable salary" - $24k annually might be too low depending on your industry and the amount of income your S-Corp generates. The IRS scrutinizes S-Corp owners who take minimal salaries while distributing large amounts, as it looks like you're trying to avoid payroll taxes. Second, consider the timing of a large distribution. If you take $250k out right before year-end, it could create cash flow issues for paying estimated taxes on your business income. The business high-yield savings account suggestion is solid - you keep proper separation while earning interest. But if you do decide to take a distribution, document everything properly in your corporate minutes and consider spreading it across tax years to manage the impact on your personal tax situation. Have you run projections on what your total tax liability would look like with an additional $250k distribution this year?

Has anyone had success getting these penalties refunded? I'm in a similar situation where I paid about $1,200 in penalties for a missed RMD from my inherited IRA because the brokerage never notified me it was due. Currently waiting on my waiver request.

I went through almost the exact same situation last year! That acknowledgment letter you received is completely normal - it's basically the IRS saying "we got your paperwork and we're processing it." The fact that they cashed your check is actually a good sign that they're moving forward with your submission. In my case, I waited about 10 weeks after that initial letter and then received a final notice that my Form 5329 was accepted and the matter was closed. No additional penalties, no follow-up required. The waiting is definitely nerve-wracking, but it sounds like you did everything right by including the explanation letter and paying the calculated penalty upfront. One thing I learned is that if the IRS had any major issues with your submission, they would have sent a more detailed letter asking for clarification or additional information. The generic acknowledgment usually means you're on the right track. Hang in there!

Tax preparer here (not an accountant tho). The PS5 question comes up more than you'd think! Here's my take: Can you deduct it? Yes, partially. Should you deduct it 100%? Probably not. Will it trigger an audit? By itself, unlikely. The problem isn't the deduction itself but proving business purpose. Unless you NEVER use it for gaming (be honest!), claim a reasonable business percentage. Document EVERYTHING. Create a testing log showing dates, times, client projects, and specific testing performed. Keep emails or specs from clients requesting console compatibility. Take screenshots of your work on the PS5 browser. Deduct only the business-use percentage and keep it reasonable (50-80% depending on actual use). The IRS isn't dumb - they know a PS5 has personal utility.

I'm a freelance graphic designer who faced a similar situation with my Apple Studio Display. I wanted to deduct it as a business expense but was worried about the IRS questioning such an expensive monitor. What helped me was creating a clear business justification document before making the purchase. I outlined exactly why this specific equipment was necessary for my work (color accuracy for client projects, screen real estate for complex designs, etc.) and kept detailed records of which clients required work that specifically benefited from the display's capabilities. For your PS5 situation, I'd suggest creating a similar justification document explaining why console testing is necessary for your web development business. Include details about your target clients, the importance of cross-platform compatibility, and how console browsing differs from desktop/mobile. This proactive documentation approach made me feel much more confident about the deduction and would probably help if you're ever questioned about it. The key is being able to clearly articulate the legitimate business need beyond just "it could be useful for testing." Show that it's actually necessary for serving your clients effectively.