This is such a helpful thread! I'm 28 and just started a new job that offers both traditional and Roth 401k options. Reading through all these responses really clarified the $23,500 combined limit for 2025 - I was definitely overthinking it and thought each account type had its own separate limit. One thing I'm still wondering about: if I expect to be in a higher tax bracket in retirement (hoping my career continues to grow), would it make more sense to prioritize Roth 401k contributions over traditional? Or should I hedge my bets and split between both types? Also, the HSA information from Sofia was incredibly valuable - I didn't realize it could function as a retirement account after 65. My employer offers an HSA with their high-deductible plan, so I'm definitely going to look into maximizing that alongside my 401k contributions. Thanks everyone for sharing your experiences and knowledge!

This is exactly the kind of comprehensive breakdown I was looking for when I started getting serious about retirement planning! One thing I'd add that might be helpful for folks trying to optimize their strategy is to consider the timing of when you make your contributions throughout the year. If you're planning to max out your 401k ($23,500 for 2025), try to spread it evenly across all pay periods rather than front-loading it early in the year. This ensures you don't miss out on any employer matching contributions - some employers only match on a per-paycheck basis, so if you max out your 401k contributions by June, you could potentially miss out on employer matching for the rest of the year. For IRAs, you actually have until the tax filing deadline (usually April 15th) to make contributions for the previous tax year. This gives you extra time to see what your final income will be and determine if you're eligible for Roth IRA contributions or if you need to do a backdoor Roth conversion. Also worth noting that if you change jobs during the year, you can potentially contribute to multiple employer 401k plans as long as your total employee contributions don't exceed the annual limit ($23,500 for 2025). The IRS tracks this by individual, not by employer plan. Great thread - bookmarking this for future reference!

I've been through this exact same situation! My ID.me account got suspended about 2 months ago right when I needed to check on my refund status. After reading through all these comments, I wish I had known about some of these workarounds earlier. What finally worked for me was the chat support on help.id.me - took about 30 minutes to get through but they were actually helpful once connected. Turns out my account was flagged because I had logged in from my work computer which had a different IP address than usual. They made me re-verify with new photos (make sure the lighting is perfect!) and answer some security questions. Got it resolved in about 48 hours. While waiting, I also called that IRS transcript line at 800-908-9946 around 7 AM and actually got through to request a backup copy by mail. Definitely try multiple approaches since you never know which one will work faster. The whole system is frustrating but hang in there - almost everyone eventually gets their account restored with enough persistence!

I feel your pain! This exact same thing happened to me about 6 months ago - logged in fine for months then suddenly got hit with the suspension message out of nowhere. What worked for me was going straight to the chat support on help.id.me instead of trying to call (way faster). Turns out they had flagged my account because I'd been using a VPN while working from home, which their system saw as "suspicious activity from multiple locations." Had to go through the whole verification dance again - new photos of my ID, selfie, security questions, the works. Pro tip: make sure your lighting is absolutely perfect when taking those verification photos - they're super picky and will reject blurry or shadowy images. Got my account back in about 3 days. While you're dealing with the ID.me mess, you can also try calling the IRS transcript line at 800-908-9946 first thing in the morning (like 7 AM) to request a mailed copy as backup. Takes about 10 days but at least you'll have access to your info. Hang in there - the system is definitely broken but most people do get their accounts restored with enough persistence!

This is such a common issue for S Corp owners! I went through the exact same confusion last year. The key insight that helped me was understanding that when you pay business expenses personally and the company can't immediately reimburse you, treating it as a capital contribution (APIC) is usually the most beneficial approach. In your specific example with the $675 in expenses, yes - this should be treated as APIC, which increases your basis by $675. This means in 2025 when your company has income, you can take up to $675 in tax-free distributions as a return of your capital contribution. For reporting, since you don't meet the Schedule L threshold, I'd recommend what Edwards Hugo mentioned - create a simple "Shareholder Basis Worksheet" that tracks your beginning basis, the $675 contribution, any income/loss allocations, and ending basis. Attach this as a supplementary statement to your 1120S. The most important thing is maintaining consistent records year over year. The IRS doesn't automatically track your basis, so having clear documentation of these transactions will be crucial if you ever face an audit or need to justify tax-free distributions later.

I've been dealing with this exact same situation with my small S Corp! What really helped me understand this was realizing that the $675 you paid for business expenses essentially gives you two benefits when treated as APIC: your corporation gets the business expense deduction (reducing its taxable income), and you get increased basis that allows for tax-free distributions later. The key is documentation. Even though you don't need to file Schedule L, I'd strongly recommend creating that supplementary "Shareholder Basis Worksheet" that others have mentioned. I keep mine simple - just tracking beginning basis, contributions made during the year, any income/loss allocations, distributions taken, and ending basis. One thing that wasn't mentioned yet - make sure you have proper documentation showing these were legitimate business expenses. Keep receipts and clear records showing the expenses were ordinary and necessary for your S Corp's business operations. This will be important both for the corporation's deduction and for justifying the basis increase if the IRS ever questions it. The good news is that once you have this system in place, tracking basis becomes much easier in future years. You're essentially creating a paper trail that shows exactly why certain distributions should be tax-free returns of capital rather than taxable income.

One thing I'd add that hasn't been mentioned yet - make sure you pay by the deadline even if you're still figuring out the optimal method! The IRS charges penalties and interest on late payments, and with $150k, even a few days late could cost you hundreds in unnecessary fees. If you're running close to the deadline and still deciding between payment methods, just pick one and pay. You can always call the IRS later to confirm it was processed correctly (or use that Claimyr service others mentioned if you can't get through). Also, consider keeping a small buffer in your account after the payment. I've heard of situations where the IRS processed duplicate payments due to system glitches, and having your account completely drained could cause overdraft issues if that happens. Better safe than sorry with this much money involved!

Just went through this exact situation last month with a $142k tax bill from selling some rental properties. A few additional tips that saved me major stress: 1. Download and save PDF copies of ALL your payment confirmations immediately after submitting. Don't rely on just email confirmations - the IRS website sometimes has issues and those PDFs are your golden ticket if there are any disputes later. 2. If you're using Direct Pay, make the payment early in the morning (like 6-8 AM). I found out from my bank that large ACH transfers submitted later in the day sometimes get processed the next business day, which could technically make you late if you're cutting it close to the deadline. 3. Keep a spreadsheet with the exact payment amount, date submitted, confirmation number, and method used. Sounds overkill, but when you're dealing with six figures, that level of documentation becomes really important. The good news is that once it's submitted through Direct Pay, it usually processes within 1-2 business days and shows up in your IRS online account. But definitely call your bank first like others mentioned - mine wanted to know 48 hours in advance for anything over $100k.

I'm dealing with a very similar situation right now! Got my 1099-R last week and saw that dreaded code 2 instead of the code J I was expecting for my backdoor Roth conversion. The panic is real when you see TurboTax calculating thousands in early withdrawal penalties. From reading through all these responses, it's clear that most of these issues stem from miscommunication with IRA custodians about what type of transaction we actually want. I think I made the same mistake as the original poster - when I called my custodian, I probably said "recharacterization" when I meant "conversion" for my backdoor Roth strategy. I'm planning to call my custodian first thing tomorrow morning and be very specific that I wanted to CONVERT my Traditional IRA funds to a Roth IRA (which should be code J), not take a distribution (code 2). I'm going to ask specifically for their retirement plan operations department since the regular customer service reps seem to get confused about these distinctions. Has anyone had success getting their custodian to reverse and reprocess the transaction this late in tax season? I'm worried they'll tell me it's too late, but it sounds like several people here were able to get corrected 1099-Rs even after the forms were already issued. Thanks to everyone who shared their experiences - this thread is incredibly helpful for those of us navigating this stressful situation!

I completely understand your frustration - I went through almost the exact same situation with my backdoor Roth last year! The good news is that this is definitely fixable, but you need to act quickly. The issue is clear: you got distribution code 2 (early withdrawal) when you should have gotten either code J (conversion) or code N (recharacterization) depending on what you were actually trying to do. The problem usually comes down to miscommunication with your IRA custodian about the type of transaction you wanted. Here's what you need to do immediately: **Call your custodian TODAY** and ask for their retirement plan operations department (don't settle for general customer service). Be very specific about what went wrong - explain that you intended to do a [conversion OR recharacterization] but they processed it as a distribution instead. **Prepare your documentation** - have your account details ready and be clear about your original intent. If you were doing a backdoor Roth, you probably meant to do a conversion (Traditional to Roth), which should be code J. **Request a corrected 1099-R** - Many people in this thread have successfully gotten their custodians to reverse the transaction and reprocess it correctly, even during tax season. Don't let them tell you it's "too late" - these corrections happen all the time. If your custodian won't cooperate, you can still file Form 4852 as a substitute for the incorrect 1099-R, but getting the actual correction is much cleaner. Time is critical here, so don't delay!