Can anyone explain what the rules are for inactive accounts? My mom has an old 401k that she hasn't touched in like 15 years, and now I'm worried they could just send her a check someday and mess up her retirement plans.

This is exactly why it's so important to keep your contact information updated with all financial institutions, even on "set it and forget it" accounts. I'm sorry this happened to you - it's incredibly frustrating when a brokerage takes such drastic action without proper notice. One thing to add to the great advice already given: when you do close your remaining accounts with Bridgeway, make absolutely sure to request direct trustee-to-trustee transfers to your new institution rather than receiving checks. This avoids any possibility of triggering taxable events or missing rollover deadlines. Also, for future reference, it's worth setting calendar reminders to log into retirement accounts at least once a year, even if you're not making changes. This simple action usually resets any "inactivity" timers and ensures you receive important communications. Some people also set up small automatic contributions (even $25/month) to keep accounts clearly active. The silver lining is that you found a way to use the education expense exception - that's going to save you significant money on penalties. Make sure to keep detailed records of your daughter's qualified education expenses to support that exception if the IRS ever asks.

Just went through this exact situation a few months ago! Your instinct is right - since the W-2C only changes state allocation without affecting your total income, you don't need to amend your federal return. The IRS doesn't care which state the income came from as long as the federal total is correct. For California, you'll likely need to file an amended state return (540X) to report the additional income that's now properly allocated there. The good news is California's amendment process is pretty straightforward online. Just make sure to include both your original W-2 and the W-2C when you file. Since you're still waiting on your California refund, I'd suggest calling the California Franchise Tax Board (FTB) first. They might be able to adjust your pending return directly rather than having you file a separate amendment, which could save you weeks of processing time. Their phone number is on the California tax website. One heads up - you'll probably owe additional California tax since more of your income is now allocated there, so be prepared for that when you make the correction!

Hey Oliver! I actually dealt with something very similar last year when my employer issued a W-2C that moved income between states. A few quick points that might help: First, definitely try calling California FTB before filing an amendment - they were surprisingly helpful when I called. Ask for the "Individual Income Tax" department and specifically mention you have a W-2C correction affecting state income allocation. They have a dedicated process for handling these situations. Regarding penalties - California typically won't charge penalties or interest when the error was due to employer mistake, especially if you're correcting it promptly after receiving the W-2C. Just make sure to keep documentation showing when you received the corrected form. One thing that caught me off guard - the additional California tax you'll owe might affect your estimated tax payments for this year if the amount is significant. California sometimes requires you to adjust your withholding or make quarterly payments going forward to avoid underpayment penalties next year. Also, since you already got your federal refund, you're in good shape there. The fact that your federal numbers didn't change at all makes this much simpler than it could have been. Just focus on getting the California situation sorted out and you should be all set!

I went through this exact same situation about 6 months ago! Had a TC 570 for almost 3 weeks with zero notices. What finally worked for me was calling right at 7 AM when they open - I got through in about 35 minutes instead of the usual 2+ hour wait. The agent explained that my 570 was triggered because the IRS computer system flagged a discrepancy between my reported income and what my employer filed, even though everything was actually correct on my end. She was able to clear the hold immediately once she reviewed my account. My advice: don't wait too much longer since you're already at 2 weeks. The earlier you call in the morning, the better your chances of getting through quickly. Have your Social Security card, driver's license, and a copy of your return ready when you call. Good luck!

I'm currently in week 3 of a TC 570 hold myself, and after reading through everyone's experiences here, I decided to try the early morning calling strategy that several people mentioned. Called at 7:02 AM yesterday and got through in exactly 42 minutes - way better than my previous attempts in the afternoon that never connected. The agent told me my 570 was due to the IRS needing to verify some education credits I claimed, which makes sense since I just graduated. She said these verification holds are incredibly common right now and that most resolve within 4-6 weeks, but calling can sometimes speed things up if the agent can manually review your case. In my situation, she couldn't clear it immediately but did escalate it for priority review, so I should hear something within 7-10 business days. For what it's worth, she mentioned that returns with education credits, child tax credits, or earned income credits are getting flagged for verification at much higher rates this year compared to previous years. Might be worth calling sooner rather than later if you have any of those credits on your return.

Anyone know if the standard mileage rate is still 65.5 cents per mile for 2025? I'm tryng to estimate my deductions for next year.

Great question! I've been in a similar situation with my rental properties. The key principle is that you can only deduct the actual miles you drove, not multiply them by the number of properties visited. For your 15-mile round trip to work on both units, you should allocate those miles between the properties rather than claiming the full amount for each. Since you spent 2 hours at Unit A and 1 hour at Unit B, a reasonable allocation would be 10 miles to Unit A (2/3 of the trip) and 5 miles to Unit B (1/3 of the trip). This allocation method is defensible because it's based on the actual time spent at each property. You could also do a 50/50 split if the work was roughly equal in importance. The IRS cares more about having a reasonable, consistent method than the exact formula you use. Make sure to document your allocation method and keep good records showing the date, purpose of the trip, properties visited, and how you divided the mileage. This will help if you're ever questioned about your deductions. Whatever you do, don't claim the full 15 miles on both Schedule E forms - that would definitely be improper double-counting that could trigger problems with the IRS.

Don't forget about the annual gift tax exclusion too! It's currently $17,000 per recipient per donor (2023 amount, will be adjusted for inflation). So you and your spouse could each give $17k to each of your kids/grandkids each year without touching your lifetime exemption at all. For a family with several children and grandchildren, this can add up to substantial wealth transfer over time.

Make sure you're also considering state-level estate taxes! Not all states follow federal exemption amounts. I live in a state with a much lower estate tax threshold, and didn't realize I needed separate planning for state vs federal.