I did a broker transfer from Merrill to TD Ameritrade about a year ago and can confirm it's not a taxable event for standard stock positions. The ACAT process moved everything without triggering any sales. One thing I'd add that might be helpful - if you have any foreign stocks or ADRs (American Depositary Receipts), those sometimes have special handling during transfers. In my case, I had some European stocks that took an extra few days to transfer compared to my domestic positions. The brokers had to coordinate with the foreign custodians, which added some complexity but didn't change the non-taxable nature of the transfer. Also worth mentioning - if you have any automatic investment plans or recurring purchases set up, make sure to pause those before starting the transfer. I forgot about a monthly investment plan and it tried to execute during the transfer window, which created some confusion that took a few days to sort out. The whole process took about 8 business days for me, and TD Ameritrade covered the $75 ACAT fee from Merrill. Having better research tools and platform features has definitely been worth the temporary inconvenience of the transfer process.

I recently went through this exact same process when transferring from Fidelity to Interactive Brokers last month. Can confirm it's not a taxable event - the ACAT transfer moved all my positions without any sales being triggered. One thing I'd recommend that saved me some headaches: before initiating the transfer, log into your current broker's website and download/print comprehensive reports showing your complete cost basis history for all positions. Not just the summary, but the detailed lot-by-lot breakdown showing every purchase date and price. I also took screenshots of every account page showing my holdings. This turned out to be super valuable because about 3 weeks after my transfer completed, I noticed that one of my older positions (a stock I'd been buying regularly for 4+ years) had some cost basis discrepancies. Having my original detailed records made it really easy to work with Interactive Brokers to get everything corrected. The transfer itself took 7 business days, there was a $75 fee from Fidelity that IB reimbursed, and I'm much happier with the lower costs and better trading platform. Just make sure you don't have any pending trades or unsettled funds when you start the process, as that can delay things.

Don't forget about state taxes too! Had an internship in California while being a resident of Texas and got absolutely blindsided by CA state taxes that took like 9% of my intern pay even though I was only there 12 weeks.

This is such a common confusion for students! One thing that hasn't been mentioned yet is that you should also consider whether you'll have any education expenses this year that could qualify for tax credits like the American Opportunity Tax Credit (AOTC). If you file independently and have qualifying education expenses, you might be able to claim up to $2,500 in credits yourself. But if your parents claim you as a dependent, they get to claim those credits instead (assuming their income isn't too high). The AOTC phases out for higher-income taxpayers, so sometimes it's more valuable in the student's hands. Also, make sure you understand how your stipend is classified. Some internship stipends are considered wages (subject to payroll taxes), while others might be considered fellowships or scholarships (which have different tax treatment). Your employer should clarify this on your tax documents. The key is running the numbers both ways - total family tax liability with you as dependent vs. independent - and seeing which scenario saves the most money overall for your family.

If you get a CP40, you need to act FAST. This is their "Intent to Levy" notice, which means they're about to start taking your money from bank accounts, garnishing wages, etc. You have 30 days from the date on the notice to request a Collection Due Process hearing by filing Form 12153. This will put a hold on any collection actions while you sort things out. Don't ignore this one!

I went through something very similar last year - got a CP40 out of nowhere for my 2020 taxes. Turns out the IRS had been sending notices to an address I lived at briefly during college, even though I'd been filing with my current address for years. Here's what worked for me: First, definitely verify it's legitimate by calling the IRS directly (use the number from their official website, not the notice). When you call, ask them to read you the mailing addresses they have on file for each year - this is how I discovered the problem. Second, request Form 12153 for a Collection Due Process hearing immediately. This stops all collection actions while you sort things out. You have 30 days from the notice date, so don't wait. Third, file Form 8822 to update your address with the IRS if there's been any confusion about where you live. Even if you think they have the right address, do it anyway to create a paper trail. The whole thing took about 3 months to resolve, but the Collection Due Process hearing gave me the time I needed without worrying about my accounts getting frozen. The IRS agent I finally spoke with was actually pretty helpful once I got through to them.

One thing nobody's mentioned - don't forget about state filings for your S-corp! Depending on your state, you might need to file separate state returns for both your S-corp and personal taxes. TurboTax Business handles most state S-corp returns, but the process can be even more confusing than federal. Also, if you do business in multiple states or have nexus issues, self-filing gets complicated real quick. My S-corp operates in two states and I tried doing it myself last year... ended up giving up and hiring an accountant midway through.

I successfully filed both my 1120-S and 1040 myself using TurboTax for the past two years. As a single-member S-corp, it's definitely manageable, but here are some key things that helped me: The biggest challenge isn't the software - TurboTax does a good job with the guided questions. The real work is in preparation. Make sure you have your books reconciled properly before you start. I use QuickBooks and export my P&L and Balance Sheet directly, which saves tons of time. One mistake I made my first year was not keeping proper documentation for business expenses. The IRS wants to see business purpose for everything, especially for home office deductions and travel expenses. Now I keep a simple spreadsheet with receipts and business justification throughout the year. The reasonable compensation issue is real - I research industry salary surveys for my role and document my reasoning. Better to err on the side of paying yourself a bit more in salary than dealing with IRS scrutiny later. Overall, I save about $1,000 annually doing it myself, and I feel much more in control of my tax situation. Just budget extra time your first year and don't wait until the last minute!

I'm sorry for your loss, Liam. This is definitely a complex situation, but you're asking the right questions to avoid problems down the road. One thing I haven't seen mentioned yet is the importance of establishing the estate's tax year and EIN (Employer Identification Number) with the IRS before you receive the 401k distribution. Since your father passed about two months ago, the estate's tax year began on his date of death, not January 1st. You'll need the EIN to open the estate bank account and for all the tax reporting. Also, consider the timing carefully - if you're planning to distribute the funds to yourself and your sister quickly after receiving them, you might want to coordinate this so it all happens within the same estate tax year. This can simplify the reporting since the estate gets a deduction for distributions made to beneficiaries, potentially minimizing the estate's own tax liability while passing the income (and the 20% withholding credit) through to you and your sister via the K-1s. The withholding will follow the income, so when you each get your K-1 showing your share of the retirement income, you'll also get credit for your proportional share of that 20% withholding as a tax credit on your personal returns. Keep excellent records of everything - this level of retirement distribution needs to be reported accurately to avoid any IRS scrutiny later.

I'm sorry for your loss, Liam. Based on your situation, here are a few additional considerations that might help: Since you're dealing with a $175k distribution, make sure to ask the 401k administrator for a detailed breakdown of the account. Some plans have both pre-tax and Roth components, and the tax treatment differs for each portion. The Roth portion (if any) would have already been taxed and wouldn't be taxable again to the estate or beneficiaries. Also, given the substantial amount involved, you might want to consider whether the estate should make quarterly estimated tax payments once you receive the distribution. If you're planning to distribute the funds to beneficiaries quickly, this becomes less of an issue since the tax liability passes through via K-1s. But if there's any delay in distributions, the estate could face underpayment penalties. One practical tip: when you do distribute the funds to yourself and your sister, document everything clearly. Create a simple distribution statement showing the date, amount, and purpose (e.g., "Distribution of 401k proceeds per estate plan - 50% to each beneficiary"). This documentation will be crucial when preparing the estate's 1041 and the beneficiary K-1s. The IRS is particularly attentive to large retirement distributions, so having clean, well-documented records from the start will make the filing process much smoother and reduce the chance of any follow-up questions.