Does anyone know if the financial institution you transfer the inherited 401k to matters? I've heard some places handle stretch IRAs better than others since the SECURE Act changes. I'm in a similar situation where I qualify as an eligible designated beneficiary (I'm disabled) but worried about choosing the right place to transfer my late husband's 401k.

I'm dealing with a very similar situation and wanted to share what I learned from my estate attorney. Since you're older than the original 401k owner, you definitely qualify as an "eligible designated beneficiary" under the SECURE Act exception for individuals not more than 10 years younger than the decedent. One thing that hasn't been mentioned yet - make sure when you do the rollover that it's titled correctly as an "inherited IRA" with both your name and the deceased's name (something like "Kaitlyn Otto as beneficiary of [deceased's name] IRA"). This is crucial for maintaining the tax-deferred status and ensuring you can take the stretch distributions properly. Also, since the original owner passed in 2022, you should have already started taking RMDs by December 31, 2023. If you missed that deadline, you may need to file Form 5329 to request a waiver of the 50% penalty, but the IRS has been more lenient with inherited account penalties during the transition period after the SECURE Act. I'd strongly recommend getting everything documented before you approach the financial institution, because as others have mentioned, many of them are still learning these rules themselves.

bruh the IRS is so behind these days... still processing 2021 returns and now messing up 2022 smh

I feel your pain! I've been dealing with a similar 810 freeze since February and it's absolutely maddening. The "RETURN NOT PRESENT" message while knowing you filed is the worst part - makes you question everything. Have you tried requesting a wage and income transcript to see if your W-2/1099 info is showing up correctly in their system? Sometimes the freeze happens when there's a mismatch between what you reported and what employers submitted to the IRS. Also, if you haven't already, try calling the main IRS line (1-800-829-1040) early in the morning around 7am when they open - I've had better luck getting through then. Ask specifically about the 810 freeze and if there's any additional documentation they need from you. Sometimes they can at least tell you what triggered it even if they can't remove it immediately. Hang in there - I know it's frustrating but these do eventually get resolved! 🤞

Just wanna say that the accountant should pay for this mess if they screwed up! If they submitted incorrect forms or calculations, they should at least help fix it for free or compensate for any penalties. Accountants carry professional liability insurance for exactly this reason. Don't let them off the hook if they made a serious error that's costing your parents $135k!

This is a really complex situation, and I feel for your parents dealing with such a massive assessment. Based on what you've described, there are definitely red flags with how this was handled. The single 709 form issue you mentioned is huge - when couples elect gift splitting for life estate transfers, each spouse absolutely needs to file their own Form 709 with proper consent elections. This isn't optional. A few immediate steps I'd recommend: 1) Don't wait to respond - CP105 notices typically have 30-day deadlines 2) Get the exact language from the notice about what the IRS thinks was miscalculated 3) Gather all documentation about the original property purchase, current appraisal, and the life estate deed 4) Find out what actuarial factors and interest rates were used in the original calculation Life estate valuations are incredibly technical and use specific IRS tables that change regularly. The $220k increase in property value isn't necessarily the taxable gift amount - it depends on your parents' ages, current interest rates, and whether they properly retained life estate rights. Given the amount involved, I'd strongly suggest getting a second opinion from an estate planning attorney who specializes in gift tax, not just another accountant. This is way too much money to leave to chance, and the original accountant clearly made some serious errors.

Looks like your getting a decent refund with all those credits! Worth the wait ig 🤑

The 810 freeze code from March is likely because the IRS flagged your return for review before you even filed in April - this can happen when they're cross-referencing data or if there are discrepancies they want to verify. Don't panic about the future dates either, the IRS system sometimes uses projected processing cycles. Your multiple 766 credits from April 16th look substantial, so once that freeze lifts you should see a nice refund. The 960 code for appointed representative is concerning though - if you didn't authorize anyone, you might want to call the IRS to verify no one has fraudulently gained access to your account. That could actually be related to why you have the 810 freeze in the first place. I'd suggest checking your online IRS account to see if there are any letters or notices waiting for you that might explain the review. Sometimes they just need you to verify your identity or provide additional documentation.

Word of advice - make copies of EVERYTHING you send them. learned that the hard way last year when they 'lost' my documents 🙄

Based on your transcript, the examination timeline looks pretty standard for EIC verification. The key thing to watch for is that Code 971 notice - it should arrive within the next few days if it hasn't already. When it does come, read it carefully because it will tell you exactly what documents they need to verify your EIC claim. The good news is your credits (766 and 768) are still showing for April 15th, which means they haven't been removed yet. This suggests the review is just verification, not a denial. Most EIC examinations I've seen resolve within 6-10 weeks if you respond quickly with the right documentation. Keep checking your transcript weekly for updates and be ready to send whatever they request via certified mail. The waiting sucks but it's pretty routine unfortunately.