I'm going through the exact same thing right now! Just received my W-2 yesterday and was completely confused about why my Roth 401k contributions weren't showing up anywhere. I've been contributing $500 per month all year and expected to see something with code AA in box 12. Reading through all these responses has been such a relief - I had no idea this was so common! The explanation about after-tax vs pre-tax money finally makes it click for me. Since I already paid taxes on my Roth contributions throughout the year, they're just included in my regular wages in box 1. Traditional contributions get special treatment because they actually reduce your taxable income. I just logged into my 401k account and confirmed that all my Roth contributions are properly tracked there with a clear year-end summary. Even though my W-2 doesn't show code AA, everything is documented correctly where it actually matters. Thanks everyone for sharing your experiences - you've saved me from a lot of unnecessary panic before filing this week!

I'm dealing with this exact same situation and this thread has been incredibly helpful! Just got my W-2 today and was panicking when I didn't see my Roth 401k contributions anywhere, especially since I've been contributing consistently all year. What really helped me understand from reading all these responses is that Roth 401k contributions are fundamentally different from traditional ones. Since Roth contributions are made with after-tax dollars (money I've already paid income tax on), they're included in my regular wages in box 1 of the W-2. Traditional contributions get the special code D treatment because they actually reduce your taxable income. I just checked my 401k provider's website and confirmed all my Roth contributions are properly tracked there with a clear breakdown for the tax year. Even though code AA isn't on my W-2, the plan administrator reports everything directly to the IRS on Form 5498, so the government has all the correct information. It's such a relief to know this is a common reporting inconsistency that doesn't affect our tax situation at all. Thanks to everyone who shared their experiences - especially the CPAs and retirement plan professionals who confirmed this is totally normal. I was about to delay filing thinking something was wrong, but now I can proceed with confidence this weekend!

I'm really sorry to hear about your cousin's mom passing away. This is definitely a stressful situation, but from what I understand, he should be okay as long as he keeps making payments. The key thing is that most mortgage contracts don't have automatic acceleration clauses triggered by a co-signer's death - they're more concerned with getting paid than who's making the payments. Since your cousin has been the one actually making payments all along and has never missed one, that works strongly in his favor. My suggestion would be for him to call the mortgage servicer directly and ask to speak with their estate or borrower services department. He should be prepared with his mom's death certificate and ask specifically what their process is for removing a deceased co-signer. Most servicers have a standard procedure for this and will just need some paperwork filed. It might also help to get any confirmation in writing that the loan terms won't change and that regular payments can continue as normal. This would give him peace of mind and documentation if any issues come up later. The fact that he's been responsible for payments from day one should really work in his favor here. Banks generally don't want to foreclose on performing loans - it's expensive and risky for them too.

I'm sorry for your cousin's loss. This is such a common worry, but the good news is that most lenders won't call the loan just because a co-signer passes away, especially when the primary borrower has a solid payment history like your cousin does. The most important thing is for him to be proactive about notifying the lender. I know it seems scary, but hiding it could actually cause more problems down the road. When he calls, he should ask specifically about their "survivorship" policies and request written confirmation that the loan will remain in good standing as long as payments continue. One thing that might help ease his mind - if this is an FHA loan, there are federal protections specifically preventing lenders from accelerating the loan due to a co-borrower's death. Even with conventional loans, most major lenders have policies in place for exactly this situation since it's so common. The key is that he's been the one making payments all along and has never missed one. That payment history is his strongest asset here. Banks make money from borrowers who pay on time, not from foreclosures or forced refinancing. I'd also suggest he gather any estate documents he might need (like letters testamentary if he's handling his mom's estate) in case the lender requests them, but most of the time they just need the death certificate and a simple form to update their records.

I went through almost the exact same situation two years ago when I became a 6% owner in my consulting firm. Like you, I was worried about losing our dependent care FSA benefits, but my concerns were unfounded. The key distinction is that ownership restrictions for FSAs apply to the company where you have ownership, not to benefits obtained through a spouse's separate employer. Since your husband's FSA is through his company (where you have zero ownership), your new LLC ownership status is completely irrelevant to that benefit. One practical tip: when you transition to receiving distributions instead of W-2 wages, your household's tax situation will change significantly. You'll likely owe more in taxes due to self-employment taxes on your share of LLC profits. Consider increasing your dependent care FSA contribution to the maximum if you're not already doing so - it's one of the few tax advantages that actually becomes more valuable when you're paying higher effective tax rates as a business owner. Also, make sure your operating agreement clearly spells out how distributions will be handled and when. You'll want predictable cash flow for those quarterly estimated tax payments!

As someone who works in tax compliance, I can confirm what others have said - your LLC ownership won't affect your husband's dependent care FSA eligibility at all. The 2% owner restriction is specific to S-corporations and only applies when the owner is participating in their OWN company's cafeteria plan. However, I want to emphasize something that hasn't been mentioned enough: make sure you fully understand the tax implications of switching from W-2 to LLC distributions. Beyond the self-employment tax issue others discussed, you'll also lose certain employee benefits like unemployment insurance coverage. Also, depending on how your LLC is structured, you might have "guaranteed payments" instead of distributions if you're still working there regularly. Guaranteed payments are treated differently for tax purposes - they're subject to self-employment tax but they're also deductible to the LLC. Make sure your accountant explains the difference and how your specific arrangement will be classified. The FSA question is straightforward, but the overall tax transition deserves careful planning. Consider doing a tax projection for the full year to avoid any surprises at filing time.

Another consideration that hasn't been mentioned yet is the interaction between capital losses and the Net Investment Income Tax (NIIT) if you have substantial investment income in future years. When you carry forward these capital losses, they can help reduce not just your regular income tax but also potentially shield some investment income from the 3.8% NIIT if your modified adjusted gross income exceeds the thresholds ($200k single, $250k married filing jointly). This could make establishing these losses even more valuable than just the $3,000 annual ordinary income offset. If you're expecting significant capital gains or investment income in future years, properly documenting these carry-forward losses now could save you thousands in NIIT down the road. Just something to factor into your cost-benefit analysis of whether it's worth the effort to file those amended returns.

One more thing to consider that might help speed up the process - if you're dealing with losses from major brokerages like Fidelity, Charles Schwab, or E*Trade, they often have historical tax documents available online going back several years. You can usually download your original 1099-B forms and consolidated tax statements for 2021-2022 directly from their websites, even if you didn't save them originally. This can save you a lot of time versus requesting paper copies by mail, and having the official brokerage-generated forms will make your amended returns much cleaner and less likely to trigger questions. Most brokerages also have year-end summary reports that clearly break down your gains and losses, which makes filling out Schedule D and Form 8949 much more straightforward. If you've switched brokerages since then, you should still be able to access your old accounts online in most cases. Just make sure to download everything you need now while it's still easily accessible - some brokerages only keep online records for a limited number of years.

@Sophia Long - I've been through this exact decision with my Sarasota property and wanted to share some lessons learned. With your $65K expected rental income and only 28 personal use days, you're in a great position for full rental property treatment. The math works strongly in your favor: Your $850/month HOA fees ($10,200/year), 15% management fees (~$9,750), plus mortgage interest, insurance, utilities, and maintenance will likely create substantial deductions. Add in depreciation on roughly $350-380K of the property value (excluding land), and you're looking at potentially $12-15K annually in depreciation alone. Here's what I'd focus on for your Naples property: 1. **Documentation is everything** - Start that day-by-day calendar tracking immediately. I use a simple Google Calendar with color coding: blue for rental days, red for personal use, green for maintenance. This saved me during an audit. 2. **Naples rental market advantage** - The year-round tourist season plus snowbird rentals make hitting 280+ rental days very achievable. I consistently get 320+ days on my Gulf Coast property. 3. **Maintenance day strategy** - Days spent primarily on repairs/maintenance don't count as personal use. Schedule your maintenance visits strategically and document the work done. 4. **Consider the QBI deduction** - With rental property treatment, you may qualify for the 20% Qualified Business Income deduction on your net rental income, which could save you significant tax dollars. The key question: Can you realistically achieve 280+ rental days? If yes, rental property classification will likely save you thousands compared to mixed-use treatment. The depreciation and expense deductions far outweigh the mortgage interest deduction you'd get with vacation home treatment.

This is such a timely discussion! I just went through a similar decision with my Fort Myers property last year. One thing I'd add that hasn't been fully emphasized - the importance of setting up your record-keeping system BEFORE you start renting. I learned this the hard way when I had to reconstruct 6 months of rental activity for my CPA. Now I use a simple spreadsheet that tracks: date ranges for each rental booking, guest names, rental income received, personal use dates, and maintenance/repair dates with brief descriptions. For your Naples property with $65K expected income, the numbers strongly favor rental property treatment if you can hit those rental day thresholds. But here's a practical consideration - Naples has some HOA communities that restrict short-term rentals or require special permits. Double-check your HOA bylaws and any city ordinances before committing to the Airbnb/VRBO strategy. Also, consider seasonal pricing optimization. Naples peak season (December-April) can command 2-3x the off-season rates. You might be able to achieve your 280+ rental days while still preserving some prime weeks for personal use by being strategic about when you block out personal time. The $850/month HOA fee actually works in your favor tax-wise - that's $10,200 in deductible expenses right there. Combined with Florida's no state income tax advantage, you're positioned well for strong after-tax returns. Have you run the numbers on what your effective tax rate would be under each classification scenario?