Thank you for this breakdown! Would you recommend getting a consultation just for the first year of marriage to understand any new strategies, or is this something we should plan to do annually going forward?

I'd recommend a consultation for the first year of marriage to understand the new strategies and options available to you as a married couple. After that initial consultation, you can assess whether the accountant provided enough value to continue annually. Many clients find that an every-other-year check-in with an accountant is a good compromise - they get periodic professional review while handling the more straightforward years themselves. Given both your high incomes, there may be ongoing tax planning opportunities that make annual meetings worthwhile, but this is something you can determine after that first consultation.

This is such an underrated comment. I spent 8 hours doing my taxes last year with similar income to OP, and all to save maybe $400 on an accountant? That's a terrible hourly rate for my weekend time!

Thank you for the specific TurboTax guidance! I found the override option exactly where you described. After adjusting it, my tax calculation looks much more reasonable now. One more question - did you have to file any additional forms to explain the override, or did TurboTax handle that automatically?

TurboTax handled the override automatically without requiring additional forms. The software does add a note to your return that explains the override, which is actually helpful in case of an audit. Just make sure to keep copies of both 1099-Rs and any documentation that came with the distribution explaining the excess contribution correction. That paperwork is your proof if the IRS ever questions the override.

Does FreeTaxUSA handle state returns well too? I've been considering switching from TurboTax due to their constant price increases.

Yes, FreeTaxUSA handles state returns quite well! They charge a small fee for state filing (much less than TurboTax), but federal filing is completely free regardless of complexity. I switched three years ago and haven't looked back. For retirement distribution issues like this, their interface explicitly asks about each distribution code and automatically applies the correct tax treatment. For something like a BP code, it immediately marks it as non-taxable without requiring manual overrides.

Thanks for this advice. I reached out to our payroll department yesterday and they're "looking into it." Did your company initially deny there was an issue? I'm getting some resistance from our HR coordinator who keeps insisting their reporting was correct.

Yes, at first they denied anything was wrong! It took about two weeks of me and other affected coworkers persistently following up before they finally investigated properly. Their initial response was "our system doesn't make mistakes" but clearly it did. Ask if anyone else in the company received similar notices - that was what finally got them to take it seriously when they realized multiple people were affected. If possible, get a copy of your "Last Pay Statement" for the tax year in question - this should show your year-to-date earnings and withholdings that should match your W-2.

What happens if you miss the 30 day deadline? My notice arrived when I was traveling for work and I just opened it yesterday. The response due date is in 5 days!

That's actually a really helpful suggestion! I hadn't thought about switching providers, but it makes sense to look for better investment options. Did you have any fees when you moved your Roth IRA to Fidelity? And how long did the whole process take?

No fees to transfer the Roth IRA to Fidelity - most major brokerages don't charge for incoming transfers. The whole process took about 2 weeks from starting the paperwork to having everything settled in the new account. Fidelity handled most of the transfer work once I filled out their forms. The good part was getting access to their research tools and fund options. I met with one of their advisors (free consultation) who suggested a portfolio mix based on my retirement timeline that's been working well.

This is a really important point! I had a similar situation happen and it's easy to focus on the loss and forget that the money you put in is still accessible if needed.

Really? I thought Free File was only for super simple returns. Can it handle things like stock sales and early retirement distributions? I'm not confident in doing all those calculations myself.

Free File through partner companies (like TurboTax, H&R Block, etc.) can absolutely handle stock sales and retirement distributions if you qualify by income. The software is the same as their paid versions, just offered free through the IRS partnership. If you use Free File Fillable Forms (the direct IRS option), it's basically just electronic versions of paper forms with basic calculations. That option requires more tax knowledge since you need to know which forms to fill out, but it's still free and available to everyone regardless of income. For your situation, I'd recommend using one of the Free File partner software options to file your extension now. Then when you return, you can use the same service to complete your full return with all your investment documents. Much better than paying hundreds to a storefront preparer!

I second this. The IRS is much more accommodating than people expect when you're upfront about your situation. I've been on payment plans twice and it was simple to set up. The interest rates are usually better than credit cards too.