@nathobert , I am really confused here --- some things don't make sense -- why did your wife receive a 1042-S, since she has SSN and is a Resident for Tax purposes ( DACA is really not applicable for the IRS/ State tax purposes ).; since DACA has been around for some years , this is not her first year of filing or has she been a student all this time ; is this your first year filing joint; since she is not 55 , the liquidation of the retirement account will attract extra punitive 10% tax or is it that she is moving to another employer sponsored plan; which country is she from ( she probably does not have a passport from that country -- yes ? ) --???
Please could you provide the information above for a fuller picture -- I will circle back ----pk