Exactly! Let this be your buffer so that you can make a budget to save (and invest) significantly!

I’m sorry for your loss. Please shove it into a savings account in the hopes that you will now never need to carry a credit card balance again, since you have the beginning of an emergency fund.

No. In your bedroom, you signed and dated a post-it in 2022, saying how much you were going to defer. As long as the plan was established in 2022, you can make employee contributions.

If you put that in, that part shouldn’t be showing taxable.

There still should have been a code G that it was rolled to a qualified plan. You won’t get a 5498, since that’s only for IRAs. The first check was for sure made out to Fidelity?

I believe the confusion is that their terms and conditions say you can’t get the bonus if you’ve already maxed your contribution, but it never actually counts as a contribution.

Correct. And then convert into the same Roth.

Then how are you maxing?? Are you sure she doesn’t want to run this to see how much salary you need to draw?

must be handed over, no strings, no oversight

And you’re drawing a 200k salary?

You better believe it!

Then you’ll want to research “probating a will” in your state and see if the directions are clear enough.

Who is named as Executor in the will? If you say your state and the approximate dollar amount, people may be able to help you see whether you need to do a full probate. But no, you can’t just move the money.

He has been living there for a month or so!

He did live there at the time of the accident, for at least a month.

Now I finally see where you give the important information!! He lived at their home in California at the time of the accident and no one told the insurance company!! That’s the only issue that’s important.

The part you’re leaving out is that he LIVED in California in their home and was not listed as a household member!!!!

We don’t understand what you mean by “removed.” The car was removed from the policy? The nephew was listed as an excluded driver? The nephew was no longer listed as a member of the household? Those are all very different.

Tax may or may not have been withheld, but that doesn’t change how much was OWED.

If that is your question, then delete everything else in your post, other than the fact that your mother passed. Generally estimated taxes are withheld and then when the final tax return is filled there is a refund or taxes due. We don’t know if she under-withheld, overwithheld, or properly withheld. You would need to see her 1040. You also mentioned a will, which is why I suggested looking at the 1041 as well.

The 1040 is where salary and other income is reported. You don’t know if the correct amount was withheld from her paycheck.

You’re welcome! You too!

Getting more money in tax-advantaged space is generally a good idea! If you can afford to do that and this is a good reminder, go for it!

So, the VW had only liability insurance and he was literally listed as an excluded driver?

You’re fine. Assuming you think your investments will go up, you convert as soon as each contribution collects. That way, there are no earnings to pay tax on - they accumulate in the Roth instead. If you forget or don’t have time, convert that contribution when you think of it or after the next one.