Wow, reading through all these responses has been incredibly educational! As someone who recently went through a similar inheritance situation, I can't stress enough how important it is to act quickly on this. I inherited my grandmother's IRA in 2021 and made the mistake of assuming I had 10 years to figure it out. Turns out she had already started RMDs, which meant I needed to continue taking annual distributions during the 10-year period. I missed two years of required distributions before realizing my error. The penalty relief process that others have mentioned really does work. I filed Form 5329 for the missed years, marked "RC" for reasonable cause, and included a letter explaining how the SECURE Act changes created confusion about the requirements. The IRS accepted my explanation and waived the penalties completely. For your letter, keep it straightforward - explain that the SECURE Act created new rules for inherited IRAs, that professional guidance was inconsistent or unavailable, and that you're now taking corrective action as soon as you understood the requirements. Include dates and reference the specific confusion around inherited IRA RMD rules. Don't let your dad's advisor's reluctance to help discourage you. Many advisors are still learning these rules themselves. The custodian route that others mentioned is definitely worth trying first - they deal with this daily and can give you the exact numbers you need.

Reading through all these responses, I'm struck by how many people are dealing with similar inherited IRA confusion. The SECURE Act really did create a perfect storm of complexity, especially for situations like yours with double-inherited accounts. One thing I haven't seen mentioned yet is that you should also check if your dad's IRA accounts had any beneficiary designations that might affect your situation. Sometimes when people inherit IRAs, there can be contingent beneficiaries listed that could complicate things further. Also, while everyone's focusing on the penalty relief (which is definitely important), don't forget about the tax planning aspect. Since you have until 2032 to empty both accounts, you might want to spread the distributions across multiple tax years to avoid pushing yourself into higher tax brackets. This is where a good tax professional becomes really valuable - not just for handling the penalties, but for creating a withdrawal strategy that minimizes your overall tax burden. The fact that your dad's advisor is being evasive is unfortunately common. Many advisors are overwhelmed by the SECURE Act changes and would rather punt to someone else than risk giving incorrect advice. Don't take it personally - just keep looking for someone who specializes in this area. You've got options here, and with the penalty relief available for SECURE Act confusion, this situation is definitely fixable. The key is acting soon rather than continuing to wait.

I want to add another perspective that might help clarify this situation. As someone who works in tax preparation and sees these scenarios regularly, the confusion between economic loss and tax loss is extremely common with partnership investments. When you invest in a partnership or fund, you're essentially becoming a fractional owner of that entity's business activities. If that partnership trades section 1256 contracts (like certain index futures, forex contracts, or broad-based index options), any gains or losses from those trades get allocated to partners based on their ownership percentage. The $245 loss on your K-1 isn't "phantom" or artificial - it represents real trading losses that occurred within the partnership. You didn't see this money leave your personal account because the partnership conducted this trading with its own capital, but as a partner, you're entitled to your share of both the profits and losses for tax purposes. This is actually beneficial tax policy because it prevents double taxation and ensures that investment losses flow through to the actual economic owners. Your total tax loss of $845 accurately reflects your combined personal trading activity ($600) plus your proportional share of the partnership's section 1256 contract losses ($245). The key takeaway is that partnership taxation looks at economic substance rather than just cash flow in your personal account. Both losses are legitimate and should be reported as your tax preparer indicated.

I've been following this thread with great interest because I had almost the exact same situation last year with my volatility trading and K-1 reporting. Like you, I was really confused when my tax documents showed losses that didn't match my actual account balance. What finally helped me understand it was realizing that when you invest in certain funds or partnerships, you're not just getting exposure to their investment returns - you're actually becoming a partner in their business activities. So when that partnership trades section 1256 contracts (which get special tax treatment), you get allocated your proportional share of those gains and losses even though the actual trading happened at the partnership level with their capital, not yours. The $245 on your K-1 represents real economic losses from section 1256 contract trading that occurred within the partnership you invested in. Since you're a partner, those losses flow through to your personal tax return. Your personal $600 SVIX loss is completely separate - that's from your direct trading activity. Your tax preparer is absolutely right about claiming both losses. The total $845 represents your legitimate tax losses for the year: $600 from your personal trading plus $245 as your allocated share of the partnership's section 1256 contract losses. Even though only $600 left your bank account, you're entitled to claim both because they represent different economic activities you participated in. The section 1256 contracts also get that special 60/40 tax treatment on Form 6781, which is why they can't just be combined with your regular capital losses on Schedule D.

This is a complex situation that really benefits from getting proper professional guidance. Based on what others have shared here, it sounds like the consensus is to: 1. Transfer funds from dissolved LLC to your personal account as a final distribution 2. Then contribute those funds to your new LLC as capital But I'd strongly recommend documenting everything thoroughly. Keep records showing the old LLC was properly wound down, all obligations were met, and the distribution was legitimate. Also make sure you understand your basis in the old LLC to avoid any unexpected tax consequences. Given the amount involved ($95K), this isn't something I'd wing it on. Whether you use one of the services mentioned here or work with a local CPA, having someone review your specific situation and state requirements seems worth the cost to avoid potential issues down the road.

This thread has been incredibly helpful! I'm in a similar situation with a dissolved LLC but with only about $15K involved. Reading through all these responses, it seems like the key takeaways are: 1. Don't transfer directly between the old and new LLC 2. Move funds to personal account first as a final distribution 3. Then contribute to new LLC as capital 4. Document everything properly 5. Consider state-specific creditor notification requirements 6. Watch out for basis issues that could create taxable events One question I haven't seen addressed - does the timing matter? Like, should there be a waiting period between when you take the final distribution and when you contribute to the new LLC? Or can these happen back-to-back as long as they're documented as separate transactions? Also wondering if anyone knows whether the bank cares about this process. When I transfer the money to my personal account, do I need to provide any explanation to the bank about why I'm closing the business account, or do they just process it like any other transfer?

Welcome to the working world, Alexander! I remember being just as confused when I got my first job at 17. The tax withholdings you're seeing are completely normal, but there are definitely ways to optimize them for your situation. Since you're only 16 and working part-time, you'll likely qualify to claim exempt from federal income tax withholding if your total earnings for the year stay under the standard deduction (around $14,600 for 2025). This would stop the $32.18 federal withholding but you'd still pay Social Security and Medicare taxes - those are required for everyone. Here's what I'd recommend: Keep detailed records of your hours and pay, and use that to estimate your total yearly income. If it looks like you'll stay well under $14,000, go ahead and update your W-4 to claim exempt. You can always change it back if your hours increase significantly during summer break. Also, even though your parents will likely claim you as a dependent, you should still file your own tax return to get back any federal taxes that were withheld. Most online tax software is free for simple returns like yours. Good luck with your first job - you're asking all the right questions!

Great question, Alexander! I went through the same confusion when I started my first job at 16. Your withholdings look completely normal - those are the standard deductions everyone pays. Here's a quick breakdown: Federal, state, and city taxes go to different government levels, while Social Security (6.2%) and Medicare (1.45%) are mandatory for all workers regardless of age. The good news is that as a part-time student worker making around $5,000 annually, you'll likely get most of that federal tax back when you file your return next year. I'd definitely recommend talking to HR about updating your W-4 to claim "exempt" from federal withholding. Since your yearly income will probably be well under the standard deduction (~$14,600), you won't owe federal income tax anyway. This would put that $32.18 back in your pocket each paycheck while you'd still pay the required Social Security and Medicare taxes. And yes, you can absolutely file your own tax return even at 16! Your parents can still claim you as a dependent on their return, but you should file your own to get back any over-withheld federal taxes. Keep all your pay stubs - you'll need them to verify the W-2 form your employer sends you in January. You're being really smart by asking these questions early. Most people don't think about optimizing their withholdings until they've been working for years!

I made the switch from Desktop to QBO about 8 months ago for my landscaping business and wanted to share my experience since I was in a similar situation as you, Sean. The good: Being able to invoice clients immediately after completing a job has been huge for my cash flow. I can create estimates on my tablet while walking properties with customers, and the expense tracking through the mobile app (just snap photos of receipts) has simplified my bookkeeping tremendously. The challenges: QBO's job costing features are more limited than Desktop - I miss some of the detailed project profitability reports I used to run. The inventory tracking for my nursery stock is also more basic, though it handles my needs adequately. And yes, it is noticeably slower, especially when running year-over-year comparisons. Cost-wise, the subscription does add up over time, but I've probably saved 2-3 hours per week on administrative tasks, which more than justifies the expense for me. The automatic bank feeds and simplified reconciliation process alone have been worth it. My advice: If you're heavily reliant on advanced inventory features or complex reporting, stick with Desktop. But if mobility and streamlined workflow are priorities, QBO might be worth the trade-offs. Maybe run them parallel for a month before fully committing?

I've been through this exact transition with several clients, and the key is really understanding your specific business needs before making the jump. One thing I don't see mentioned much is the difference in user permissions and access controls. QBO's user management is actually more granular than Desktop in some ways - you can give your bookkeeper access to enter bills but not see profit margins, or let field staff create estimates without accessing financial reports. This has been really valuable for businesses with multiple employees handling different aspects of the books. However, if you're doing any kind of advanced manufacturing or complex inventory valuation (LIFO, specific identification, etc.), Desktop is still superior. QBO uses average cost only, which can be limiting. For your physical products concern - QBO handles basic inventory tracking fine, but lacks some of the assembly/manufacturing features of Desktop. If you just need to track quantities and basic cost of goods sold, you'll be okay. If you need lot tracking, complex BOMs, or detailed inventory reports, you might want to stick with Desktop or look into a dedicated inventory management add-on. The subscription cost does add up, but factor in the time savings from automated bank feeds, mobile access, and easier collaboration with your accountant. Most of my small business clients find the efficiency gains offset the higher long-term costs.