Something important that nobody has mentioned yet - make SURE you're actually eligible for an HSA in the first place. I nearly made a huge mistake because I didn't realize that being enrolled in my spouse's FSA made me ineligible for HSA contributions, even though I had an HDHP.

Great breakdown of your strategy! One additional consideration for the rollover portion - when you roll the remaining IRA funds to your 401k, make sure to coordinate the timing with your tax planning. If you do both the QHFD transfer and the 401k rollover in the same tax year, it'll simplify your tax reporting since all the IRA activity happens at once. Also, since you mentioned you're relatively new to investment strategies, consider looking at the investment options in your Vanguard 401k versus what you had in the Fidelity IRA. Sometimes consolidating for administrative simplicity is worth it even if the investment options aren't identical. One last thought - document everything carefully. The QHFD is reported on Form 8889, and you'll want clear records showing the transfer amount and dates for your tax preparer. The IRS is pretty strict about the testing period requirements, so good documentation will save you headaches if they ever ask questions.

I went through this exact same process about 6 months ago! Definitely bring multiple forms of ID like others mentioned - I brought my driver's license, passport, and social security card just to be safe. The appointment itself was pretty straightforward and took about 20 minutes. One thing I wish I had known beforehand - after they verify your identity, your return basically goes to the back of the processing queue again. So even though the verification is quick, you're still looking at several weeks for them to actually process and release your refund. In my case it was about 5-6 weeks from verification to getting the money in my account. The good news is your refund amount won't change - this is purely an identity verification issue, not an audit or anything like that. Just be patient after tomorrow's appointment and try not to stress too much about the timeline. The money will come eventually!

I had to go through this process last year and it was actually much smoother than I expected! The verification appointment itself is really quick - they just check your documents and ask you a few questions about your return to confirm you're really you. One tip: if you filed electronically, try to bring a copy of your return or at least remember some key details like your AGI from the prior year, because they might ask verification questions based on that info. After verification, my return took about 3-4 weeks to process and my refund amount was exactly what I expected - no changes at all. The hardest part is just the waiting, but at least you know it's moving forward once you complete the verification. Good luck with your appointment tomorrow!

I went through the verification gauntlet just last week! It's like a tax return escape room, except the prize is your own money. 😂 I received the 5071C letter, tried the online route first, but the system couldn't verify me (probably because I recently changed my phone number). Had to call in and speak with an agent. The agent asked me questions about: - Previous addresses - Employers from 2+ years ago - Car loan information - Credit card accounts The whole call took 22 minutes once I got through to someone. My transcript updated 3 days later, and my refund was deposited 5 days after that. Not as painful as I expected... once I finally reached a human!

I'm currently going through this same process and wanted to share what I've learned so far. Since you mentioned caring for your elderly mother, I'd definitely recommend trying the online verification first through ID.me if/when you get the 5071C letter. It's much more convenient than sitting on hold for hours with a phone call. One thing that helped me prepare was gathering all my documents ahead of time: driver's license, Social Security card, and my 2022 tax return (you'll need the prior year AGI). Also, make sure you have access to the phone number and email address that the IRS has on file for you - they use these for verification codes. The timing seems pretty consistent based on what others have shared - most people get their verification letter around 3-4 weeks after filing. Since you filed 27 days ago, you might receive yours soon. Keep checking your mailbox daily, and don't forget to check with your post office if you've had any mail delivery issues recently. Once you complete verification, the refund processing usually takes 1-2 weeks. Given your caregiving responsibilities, having a clear timeline should help you plan around this. Good luck!

I went through this exact same situation with my father's estate return two years ago. The IRS kept requesting Form 1310 even though I had already submitted it electronically. After three rounds of back-and-forth, I learned that the issue was actually with how the electronic filing system handles certified documents. Here's what worked for me: I called the IRS number on the letter and asked them to specify exactly what format they needed the court certificate in. Turns out they needed the actual raised seal to be visible, which obviously doesn't transmit well electronically. I ended up having to get a new certified copy from the probate court with clearer certification language and sent it via certified mail with a cover letter referencing the notice number. The whole process took about 10 weeks from start to finish, but once I sent the properly certified documents, they processed the refund without any further issues. Don't give up - it's just a matter of getting them the documentation in the exact format their system requires.

I'm dealing with a very similar situation right now with my late grandmother's return. The IRS sent me the same letter requesting Form 1310 and supporting documents that I know I included with the e-file. Reading through these responses has been incredibly helpful - I had no idea about the raised seal issue with certified documents. That explains why my electronically submitted court certificate might not have been accepted even though it looked fine to me. I think I'm going to follow the advice here and call the IRS number on my notice to ask specifically what format they need the documentation in before I resubmit anything. It sounds like getting clarity upfront about their exact requirements could save weeks of back-and-forth. Has anyone had success getting through to the IRS phone lines recently? I've been dreading making that call because of all the horror stories about wait times, but it seems like that might be the most direct path to resolution.

Has anyone used TurboTax for reporting these CD penalties? Does it handle this situation well or should I be looking at other tax software options?

Just went through this exact situation last month! I had to break my CD early in 2023 for emergency home repairs. Here's what I learned from my research and talking to my tax preparer: The penalty will definitely show up on your 2023 1099-INT (which you'll receive in January/February 2024), not on any amended 2022 form. The bank reports penalties in the year they actually charge them, not when the CD was originally opened. One thing that really helped me was keeping detailed records of the CD closure. I took screenshots of my online banking showing the penalty amount because I wanted to verify it against the 1099-INT when I receive it. The silver lining is that early withdrawal penalties are "above-the-line" deductions, meaning they reduce your adjusted gross income dollar-for-dollar. So if you paid a $500 penalty, that's $500 less in taxable income, which could save you $100+ in taxes depending on your tax bracket. Don't stress too much about it - this is a pretty common situation and the tax treatment is straightforward once you get that 2023 1099-INT!