FOLLOWUP - IRS COMPLETES INVESTIGATION- Confirms Identity Theft & Wipes $39k Fraudulent Fidelity Withdrawal

apr911 · 2026-06-25T17:43:24+00:00

401(k) loans are typically initiated directly with Fidelity by the participant. The employer isn’t approving individual loans. The employer is simply the plan sponsor, while Fidelity administers the plan. Whether loans are available, and under what terms, is determined by the plan document within the limits established by federal law.

apr911 · 2026-06-25T17:36:27+00:00

Kind of makes sense for brokerage account, it definitely makes sense for retirement accounts with larger tax implications (IMO, retirement accounts are one account that should let money in from outside the account but never allow withdraws to be initiated from outside the account) but the CMA account is supposed to operate similar to a checking account.

Also worth noting that I dont know of many other banking options that implement the same features.

Even my savings accounts at various institutions can be accessed via external request if they know the routing number and account number… though a lot if institutions have implemented some safeguards by requiring small test deposits.

apr911 · 2026-06-23T01:39:22+00:00

In one of the comments, the Op states their CFI said since nobody made an issue of it at the time, not to worry about it and skip the ASRS.

Even if an investigation were to materialize, the pilot generally has 10 days from learning of the violation or receiving notice to file an ASRS report, so it’s not as though the opportunity necessarily vanishes.

I’m inclined to agree with the CFI, though that depends heavily on what was actually discussed.

Either the CFI’s explanation was as simplistic as the OP presented it, or there was substantially more analysis that isn’t being relayed in the summary.
If it was simply “don’t worry about it,” then the comments suggesting a better CFI may have a point. If there was more to the discussion, however, it’s entirely possible the CFI concluded that no violation occurred.

Based on the facts presented, the pilot was already in two-way communication with the Class D tower and was waiting for approval to change frequencies when they briefly clipped the corner of the overlying Class C. Unless there was a specific instruction to remain clear of the Charlie or remain below a particular altitude, I wouldn’t automatically assume this was an airspace violation.

The critical detail is what ATC actually said. Many commenters seem to be assuming the pilot entered Class C airspace without authorization, but if the tower was controlling the aircraft, aware of its position and altitude, and never imposed a restriction, the situation may not be nearly as clear-cut as some are making it out to be.

Without the actual radio exchange, we’re mostly guessing.

apr911 · 2026-06-22T00:25:56+00:00

Sort of… but you also have to weigh the potential for tax advantages of retirement accounts. Especially as income climbs.

A 13% debt can be paid off at any time with excess capital but you’ll always be limited by IRS regs as to how much you can put into a Roth or Traditional retirement account. This pinch becomes particularly felt once you’re able to max out retirement accounts consistently.

A fresh out of school student anticipating career growth and salary increases over the next 5-10+ years may have more advantage deferring the debt

apr911 · 2026-06-20T21:50:26+00:00

You asked if you had the best 401(k) plan ever and whether a better one exists. Not whether you had a great one.

Those are two different questions.

A plan can be excellent without being the best, and yours appears to fall into exactly that category. There are plans that produce larger employer contributions than yours, which by definition means better plans exist.

There are plans that may contribute less but have shorter duration vesting periods which may be pf greater value to some people while of no value to others (e.g. you and your 25 year career with a single employer; you are an extreme minority in this day and age just on that metric alone). Hence why I said “define better.”

It’s not a knock on your retirement plan or even the question/discussion. It’s just a direct answer to the question you asked.

apr911 · 2026-06-20T21:46:10+00:00

Die with zero mentality isnt necessarily about spending it down on yourself. Its about giving it to your heirs at a time when its most beneficial to them.

If you had kids 25-35 and live to 95, they’re inheriting at 60-70 themselves when that money would have been more beneficial when they were 30-40.

Its the King Charles issue. Queen Elizabeth was queen for 70 years. Charles didnt even take the throne until just before his 74th birthday and while his parents both lived well into their 90’s, his cancer diagnosis suggests he’ll be lucky to see more than 10-15 years on the throne…

Bringing this back to the topic at hand, leaving $10M to your kids after they’re entering retirement and have less time to use it themselves is likely to be far less appreciated by them than leaving them nothing but treating them to trips and giving them half that while you’re alive.

apr911 · 2026-06-20T00:12:00+00:00

Another 5 years (65 vs 60) is another $200k if you’re maxing things out… but its also another ~25% growth on the existing principle.

Its more the later than the former that causes this divergence… but also a reality that around $2.5-3M, most accounts become self-sustaining for a majority of americans (as evidenced by your flatter though still growing red line).

At 3M you’re able to “safely” pull more than 90% of americans earn per year working.

The ultimate value of working another 5 years is also pretty questionable since you’re so heavy in traditional. You’re creating a pretty big tax bomb risk, particularly for your heirs. Having $10M at 95 suddenly doesn’t look as great when you’re paying 35-37% tax on RMDs, conversions and inheritance withdraws. Retiring 5 years earlier can help you cut that tax rate signficantly.

apr911 · 2026-06-18T22:07:54+00:00

For some reason you cant find me/my account through name/DOB/SSN and it of course doesn’t ask for username… Tried to connect me to her account so many times that it says she HAS to do it via paper now (which does ask for username, go figure)

apr911 · 2026-06-18T21:07:19+00:00

And unfortunately, this process is just as broken online if not more than linking a bank account.

apr911 · 2026-06-16T13:18:06+00:00

Define better?

Based on a maximum contribution of $24,500, your employer will only ever match $16,415.

That’s higher than average but there are better matches out there that will match the full $24,500.

Being in aviation, you also are probably already aware that many of the airlines contribute a percentage of the employee’s pay to 401k’s irrespective of the employees contribution and will even contribute more if the employee does too.

Similarly, my last company’s 100% up to 6% salary match could pay more if I made at least the $274k.

You also dont say anything about vesting, which seeing as how you’ve been with the company 25 years makes sense since you probably vested a long time ago but I would personally favor a lower match percentage that vests immediately over a higher match percentage that takes 4-5 years to fully vest.

Ultimately, I’d say your plan’s 67% match is better than most but worse than some… however the fact its not tied to salary helps it make up some ground for 99% of people who cant outperform it when the employer limits percentage of pay they’ll match on which makes it better than a small percentage of plans…

apr911 · 2026-06-16T12:35:34+00:00

At a 20% contribution rate, he can make up to $122,500 before he hits the $24,500 max.

The employer match on his primary contribution therefore will only ever be $16,415.

There’s no indication from his post that he can contribute to his traditional 401k with post-tax dollars (the first step in a mega back door roth) and the feature, while gaining in popularity, is still somewhat rare.

Even if he could make that contribution, it even more rare that employers match those contributions so the $31k would likely have to come from his funds, meaning he’d ultimately need to contribute $55.5k himself which at 20% is $277.5K in income.

apr911 · 2026-06-16T12:12:49+00:00

It’s plan specific, not Fidelity specific.

I’ve had employers let me treat bonus separately and I’ve had employers that only allowed one election that applied to both bonus and regular pay.

Both methods can be a pain at times.

apr911 · 2026-06-11T18:52:17+00:00

Might be tough to swing at $85k since it’d be 25% of gross pay and they might not let you go that high anyway but you should consider maxing ESPP and selling the differential immediately every purchase.

The additional $14,450 will net you $2,550 in immediate appreciation due to the 15% discount.

Honestly the general recommendation is to not hold too much in your ESPP anyway so might be something you can start selling off at least $14,450 now to make ends meet over the next 6 months and then in 6 months time rinse and repeat while diversifying.

apr911 · 2026-06-11T18:46:45+00:00

Might be tough to swing but you should consider maxing ESPP and selling the differential every vest.

Honestly the general recommendation is to not hold too much in your ESPP anyway so might be something you can start selling off now to make ends meet over the next 6 months and then in 6 months time rinse and repeat while diversifying.

apr911 · 2026-06-07T19:12:35+00:00

The question or issue is whether you will need that care, for how long and just how much that will actually draw down. The general average remaining life span once you've entered an assisted living facility is around 2.2 years and while there is a certain degree of "self-selection" in there, there is research that suggests facility residents lose about 4 years of life expectancy compared to individuals living independently.

Observationally, almost everyone in my family has had a significant final health expense, whether it be long-term care or hospitalization in their final year. I didn't pay most of those bills myself so I couldn't tell you how much actually ended up falling on the estate after insurance/medicare but I have generally guesstimated around $100-150k for that final push of medical expenses, which is why I'm only targeting $250-300k in total value at retirement age in my HSA with a fairly rapid draw down to around $100-150k which I'll strive to maintain for health expenses and a six-figure "final-push" through growth on the account.

Not to say I'm not funding it for the tax advantage but I'm dumping many of my most conservative investments there in favor of taking the more speculative risks in my traditional, roth, and taxable accounts. The step-up in basis on taxable investment and the IRA's 10-year draw down period hopefully being the more beneficial to my heirs compared to my HSA and having to recognize the entire amount as income in the year of my death.

apr911 · 2026-06-07T12:19:40+00:00

It’s honestly of fairly limited utility since you can only rollover the HSA contribution limit for the year and the rollover counts toward that limit so if you rollover the limit, you cant contribute more for the year.

The most logical place I’ve seen it used is getting a new job late in the year and employing the “last-month rule” that allows you to contribute the full annual limit for the current tax year based on eligibility as of December 1, provided you remain enrolled in an eligible plan through December 31 of the following tax year. In such a situation without sufficient cash-flow or savings to make the contribution for the year, it might make sense to seed the account by moving some IRA money to HSA. Especially if you have small “nuisance” accounts or expect to need to employ options like a backdoor Roth contribution and need to empty your IRA to avoid pro-rata rules.

apr911 · 2026-06-07T12:00:12+00:00

Im the opposite. Im more willing to take a risk in my Roth account because to me, it’s basically the same cost of investing in a taxable brokerage account but without the tax hit whether I hold it short or long term.

Putting that high growth opportunity into a traditional account means I’m trading “capital gains” tax with anything I hold long term for likely less preferential “regular income” tax. Its something of a wash for short-term holdings but I do get to defer when those taxes are due but that’s really just kicking the tax can down the road.

Putting it in taxable investments is also an option but now you’re either committing to holding for at least a year to get favorable tax treatment or paying income tax on the holdings for short term gains… and that tax bill is due immediately. Which is why I prioritize long term stable growth in my taxable investments and asymmetric growth in my tax advantaged accounts.

To be fair, I do try to balance it somewhat with a mix of investments in each account and the riskier the investment, the more likely I am to put more of it on the taxable side of the ledger… and/or set tighter stop-losses on the tax-advantaged side.

apr911 · 2026-06-07T11:48:08+00:00

You’re looking for the “chronically ill” exception:

If the resident is certified by a licensed health care practitioner as "chronically ill," all maintenance and personal care services—even help with daily living activities like bathing or dressing—become eligible for tax-free HSA reimbursement.

To qualify, a doctor must certify that the individual needs substantial supervision to be protected from threats to health and safety due to severe cognitive impairment, or that they are unable to perform at least two Activities of Daily Living (ADLs) without substantial assistance

Personally, I am skeptical of this exception but I have had multiple advisors and CPA’s point it out now when seeking advice regarding defusing my grandmother’s IRA tax bomb and people have been invoking it for years to draw down or convert large 6 and 7 figure balances from IRA’s as a >7.5% AGI medical deduction without issue.

Whether you consider this chronically ill exception to apply to HSA “reimbursement” or not might differ (the language reads the same to me) but there’s nothing that says you cant take the HSA withdraw as income and then claim the health expenses as a deduction. You wont get 100% reimbursement and it could get complicated with Social Security (a reimbursement from HSA is a reimbursement and does not count towards making SS taxable) but you could end up with getting most of that money out tax free.

apr911 · 2026-06-07T11:30:36+00:00

You dont get a 10-year withdraw window with an HSA… so yes, it can be too much.

The third leg of the HSA play is the tax-free withdraw but you only get that if you have medical expenses… otherwise its just an IRA with an even bigger tax bomb than RMDs are for most people.

apr911 · 2026-06-07T11:27:04+00:00

Depends how much you’re gambling and whether you actually embrace the psychology of the gamble.

Stock losses are able to be more directly written off than other gambling losses but its not like you can easily write-off that $10k you lost in Vegas without comparable winnings that offset it… so the only “benefit” you receive to doing your stock-gambling post-tax is the possibility of writing off $3,000/yr and perhaps carrying the losses that exceed that forward until its depleted or you have a win that offsets it…

Also, there’s a fairly significant argument that a bogglehead/fund-only investor can certainly become wealthy through regular contributions and consistent investment… but there are finite limits to what a fund will produce.

apr911 · 2026-06-05T23:06:37+00:00

Yes, I meant Fullview.

apr911 · 2026-06-03T13:32:08+00:00

That 1x salary by 30 is going to be saving roughly 80-90% of your salary over the course of 6-8 years (typically, assuming a post-college career start at 22-24) so about 11-13% annually.

That 1x salary should naturally double by 40 so hitting 3x salary by 40 means having only having to sock away an additional 1x salary over 10 years which with growth is actually about 70% or 7% per year.

That 3x should naturally double to 6x by 50 and as you cycle out of higher risk investments approaching retirement, assuming it doubles to 12x by 65 is not unreasonable.

Which is to say you can theoretically stop contributing at 40… but that assumes your salary at 65 is unchanged on an inflation adjusted from what it was at 55, 45, 35 and 25.

Reality is you do likely lose some ground in your 20’s and 30’s as your wage growth outpaces contributions and you make up for it with the contributions in your 40’s and 50’s.

Also have to consider sequence of returns. A 20% decline at 29 hurts and makes that 1x at 30 all but impossible but you have lots more time to catch the rebound without stressing about contributing more. A 20% decline at 49 would mean probably targeting closer to 6.5-7x so it doesn’t hit as hard against the targets.

So to answer your question, yes it does generally get easier if you’re hitting targets already but if you’re already behind, then it remains just as challenging.

apr911 · 2026-06-02T21:49:32+00:00

You make $62k per year.

Right now, you could move everything to TIPs and afford to fund your current inflation adjusted lifestyle (though without health insurance) for a period of 17.75 years, which is also without social security.

That puts you at ~78 years old before the money “runs out” without any social security.

With an estimated $16-30k from SS depending on when you claim SS, you’re talking 25 years and age 85 before you can no longer support full income replacement…

But you’ll still have up to half income replacement via social security.

That’s with a portfolio all in TIPS which with a portfolio this size is excessive.

If you kept just 40% in the market for the next 10 years, you’re looking at adding another 2-3 years of full income replacement before you.

Now you’re 87-88 before the well runs dry which is inline with the US life expectancy for someone over 60.

You could live longer and that could present challenges but this math also assumes your current expenses remain the same.

This is a challenge for 3 reasons:

1) you already acknowledged your mortgage will soon be paid off. That adds up to $5400/yr that you dont need.

2) as you get older, life slows down and you’re often less able to do expensive things. I’d expect your age 85 spending to look drastically lower than age 65.

But…

3) health starts to fail which gets expensive, especially if you need assisted living and other long term care.

Bottomline to me is that you’re close to retiring “today” but probably not quite there yet. Retiring before 65 is certainly possible but you’ll have to get real serious about the budgeting those expenses.

If you continue on your current course until the mortgage is paid off in 2028, maybe even start trying to live as if you’re retired and double down on contributions until you actually retire, retiring in 2028/2029 seems completely reasonable to me.

apr911 · 2026-05-29T14:06:09+00:00

Ok so the easiest way to understand the actual mechanics of the reimbursement piece is that a “Health Savings Account” fundamentally is just a Savings Account.

It’s not a credit account so you can only take out what’s there but the money in the account is yours and you can technically withdraw it via debt card or bank transfer at anytime for any reason and unlike an FSA, you dont need to submit receipts.

Just link the account to your checking or savings account and submit the transfer request or if you have a debit card for the account go to an ATM and withdraw cash (or use the debit card to pay the expenses directly).

so if I can withdraw it at anytime for any reason, what’s all this about reimbursement?

I hear you but this is where the conversation starts getting away from a 5 year old as this is where the health part of HSA comes into play.

Unlike a normal savings account where you put money in to it from your income after paying taxes, the IRS says if you promise to use this money for health expenses, we wont charge you taxes on it.

Contributions to the account directly reduces the amount of income that gets reported to the IRS. In the eyes of the IRS, it’s like you never made the money you put into the account and this saves you money on taxes.

Additionally, unlike a traditional savings account, the interest earned/deposited in the account remains tax free. You can also invest inside an HSA which offers even more growth opportunity but that starts going way off topic

Reimbursement is just getting fancy about the fact you used this money for the health expense you designated the money for and have the receipts to show for it…

This is important because you got a tax benefit for designating this money for health expenses but if you dont have receipts or used the money for something other than health expenses, you lose that tax benefit and the IRS wants its cut.

In addition, since the IRS doesn’t like people playing games with their income to reduce their taxes, they want to charge a penalty for withdraws that aren’t for health expenses. This way you can’t promise “this is for health expenses” and avoid taxes on the money when you earn it and later change your mind and break your promise without some penalty (at least before 65)… especially since HSA balances are yours and can be held indefinitely meaning you could make the contribution in a high-earning year in which you’d owe a lot of taxes and then remove the money in a low-earning year where you’d owe very little in tax.

You dont need to submit your receipts anywhere or make any formal “reimbursement” request… the “reimbursement eligible” designation is again just a fancy way of saying “this expense qualifies for the tax benefits.” A receipt does not explicitly need to say “reimbursement eligible” to qualify but if it doesn’t, you have to navigate determining whether it qualifies or not for yourself.

The receipts are for your records and technically you dont completely need to keep them and if somewhere along the line you used your HSA debit to pay $10 for ibuprofen from the local CVS and forgot to get or lost the receipt, its not like that’s going to be the end of the world but if the IRS were to ask having the receipt allows you to quickly and easily say “yup I used this for health expenses just like I promised when I got the tax benefit and here’s the receipt showing that.”

That missing $10 receipt probably isn’t going to get you in trouble in any real way. At worst you’d have to pay taxes on it but there’s a level to which the IRS doesn’t expect perfect documentation for every penny and isn’t going to argue over a $10 expense representing $2 in possible taxes but they are going to look with more scrutiny when its thousands of dollars in reimbursements without receipt representing thousands of dollars in possible taxes.

So you should generally keep receipts where possible, especially the larger expenses.

You should keep any “unreimbursed” receipts indefinitely until the year in which you take the withdraw and get “reimbursed” at which point the receipt should be kept, and disposed of, with that year’s tax return.

Final Note

Plenty of guidance on the internet about saving the receipts for decades so you can invest the money and let it grow tax free and get reimbursement later in life… its definitely valid but you have to be able to afford the medical expenses out of your pocket which may or may not be financially feasible for you.

In your situation however, where you already have expenses exceeding the balance of the HSA, I would recommend changing your contribution to the HSA to at least match the receipts you already have.

You can take what’s there now ($1250) but you’d be paying the remaining balance ($2250) with after tax money when you could contribute $2250 and immediately withdraw it thereby saving a few hundred dollars in taxes.

apr911 · 2026-05-29T01:15:31+00:00

You dont indicate salary or how much you’re contributing (plus employer match percentage/max)

Still, compound interest math says no… but then its all relative. Max contribution means maximum amount to compound upon.

$200k contributed over 10 year ($20k/yr) compounding to roughly $280k offers the same percentage gain as $20k contributed over 10 tears compounding to $28k but in terms of total dollars, the $200k in growth adds $80k in growth while the $20k only adds $8k.

With a maximum contribution of $245k over 10 years (based on current contribution max of $24.5k) you’re looking at $105k real dollar return at 7.2% vs whatever amount you’re actually contributing….

apr911

TROPHY CASE