Thanks for this info! I did take the distribution in February 2023, which was before my filing deadline for 2022 taxes. But I'm confused about reporting the earnings - my 1099R doesn't break out what portion was earnings vs. principal. Does this mean I need to amend my 2022 return now to report those earnings? Or can I handle everything on my 2023 return?

Since you took the distribution before your 2022 filing deadline, you should definitely avoid the 6% excise tax, which is good news. For the earnings portion, yes, technically those earnings should be reported on your 2022 tax return, which would mean filing an amendment if you've already filed for 2022. You'll need to contact Vanguard to get the breakdown of principal vs. earnings from that distribution. Ask specifically for the "net income attributable" or NIA related to the excess contribution amount. This might not be reflected correctly on your 1099-R if the distribution wasn't properly coded.

I've never heard of this self-certification procedure. Does it apply to 401k contribution corrections too or just IRAs? I overcontributed to both last year and am trying to sort through the mess.

That's super helpful, thanks! Is it difficult to set up the IRS online account? I've heard horror stories about identity verification issues.

The IRS account setup is hit or miss. Make sure you have your phone in hand (they text a verification code) and a credit card or loan account number for additional verification. Most people get through fine, but about 30% of users hit snags with identity verification. If online verification fails, you'll need to either schedule a video interview or visit a local IRS office in person. The video option is much faster - usually within a week versus potentially months for an in-person appointment.

I filed 3 years at once back in 2023 and didn't get audited. But I made sure everything was accurate and had documentation for all my deductions just in case. From what I understand, simply filing back taxes doesn't automatically trigger an audit - it's more about what's IN those returns (unusual deductions, major discrepancies, etc).

As I understand it, if the injunction is eventually overturned and the BOI requirements are upheld, FinCEN would likely establish new compliance deadlines rather than trying to enforce the original ones retroactively. It would be pretty unreasonable to penalize businesses for non-compliance during a period when a court order explicitly stated they didn't have to comply. The penalties are indeed significant - civil penalties of $500 per day for violations, plus potential criminal penalties including imprisonment for willful violations. But these would only apply to violations of whatever new deadlines might be established if the CTA is ultimately upheld.

That makes sense, thanks for the clarification! I was worried we might get caught in some kind of legal trap if we don't file now but then the requirements come back later. I'll just keep our information ready but hold off on filing until there's more clarity.

I think your accountant is being overly cautious. While FinCEN's system remains operational and you technically *can* still file, there's no legal requirement to do so while the injunction is in effect. There's no penalty for not filing right now. Unless you have some very specific business reason for wanting your beneficial ownership information on file with the government during this period of uncertainty, I'd recommend waiting to see how the legal situation resolves. Just keep your information organized so you're ready if/when the requirement comes back.

But what if their parents added them as an authorized user on their HSA? Couldn't they contribute that way since it's still part of the family limit?

Being an authorized user on someone else's HSA is different from having your own HSA eligibility. Authorized users can withdraw funds from someone else's HSA for qualified medical expenses, but they don't gain contribution rights. HSA contribution eligibility is tied to having your own HDHP coverage. Being covered as a dependent on someone else's family plan doesn't make you eligible to contribute to any HSA, either yours or theirs. The family contribution limit belongs to the HSA account owner (the parents in this case), not to the dependents covered under their plan.

You've got the testing period concept right but the year wrong. The "last-month rule" would only help for 2023 contributions if OP had their own HSA-eligible coverage by December 1, 2023 (which they didn't). Since they only got their own HDHP coverage in January 2024, the last-month rule might apply to their 2024 contributions (if they maintain coverage through Dec 31, 2024), but it can't retroactively create eligibility for 2023.

That's actually a really thoughtful suggestion. We do give to our church and a couple local charities already, but hadn't thought about the tax angle. Would bunching donations in alternating years work better to get over the standard deduction threshold?

Yes, bunching donations is exactly what many financial planners recommend! For example, if you normally donate $5,000 per year, you could instead donate $10,000 every other year. This might push you over the standard deduction threshold in donation years (when you itemize) while taking the standard deduction in off years. Another option is a Donor Advised Fund, where you contribute a larger amount in one year for the tax deduction, but distribute the actual donations to charities over multiple years. This gives you the tax benefit immediately while allowing you to support charities gradually.

Yeah but the standard deduction for 2025 filing season is projected to be over $29,000 for married couples! Makes it even harder to benefit from mortgage interest unless you have a jumbo loan.