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Have Tax Questions?

Our Tax Center provides information and resources to help you prepare for the 2018 tax season. You can find answers to questions regarding your Millennium Trust accounts, as well as access educational tools explaining the IRS forms and statements you will receive.

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What is Form 5498?

IRS Tax Forms

Millennium Trust is responsible for reporting information to the IRS regarding the activity in your account. The forms listed below will be sent both to you and the IRS.

Form 5498

If you made a contribution to an IRA during the previous tax year, you will receive Form 5498. Form 5498 also reports amounts rolled over from other types of retirement accounts to your IRA. IRA contributions are accepted through April 15th of the following year. If your contribution total changes as the result of an additional contribution made by that date, an updated Form 5498 will be issued. 

Form 1099-R

If you receive a distribution from your former employer’s retirement account or a Millennium Trust IRA or other retirement plan, you will receive Form 1099-R. It discloses both full and partial retirement distributions and any taxable amounts. If you have more than one retirement account with a distribution, you will receive a Form 1099-R for each account. Direct and automatic rollovers from qualified plans or IRAs also are reported on this form.

Form 1099-DIV

Shows all taxable dividend and capital gain distributions paid to your mutual fund accounts. The dividends and capital gains shown on the form are taxable regardless of whether they are reinvested in additional fund shares or distributed in cash.

Form 1099-INT

Used to report interest income and related expenses. It discloses all interest income paid to you by a financial institution or fund during the year. Form 1099-INT may also be used to disclose any federal income tax withheld (backup withholding) or specified private activity bond interest, if applicable. The IRS uses the information on this form to ensure you report the correct amount of interest income on your tax return.

Form 1099-B

Reports all proceeds from sales and exchange transactions for your non-money market mutual fund shares, such as stocks, as well as any federal income tax withheld. 

  • 5498

    Form 5498

    If you made a contribution to an IRA during the previous tax year, you will receive Form 5498. Form 5498 also reports amounts rolled over from other types of retirement accounts to your IRA. IRA contributions are accepted through April 15th of the following year. If your contribution total changes as the result of an additional contribution made by that date, an updated Form 5498 will be issued. 

  • 1099-R

    Form 1099-R

    If you receive a distribution from your former employer’s retirement account or a Millennium Trust IRA or other retirement plan, you will receive Form 1099-R. It discloses both full and partial retirement distributions and any taxable amounts. If you have more than one retirement account with a distribution, you will receive a Form 1099-R for each account. Direct and automatic rollovers from qualified plans or IRAs also are reported on this form.

  • 1099-DIV

    Form 1099-DIV

    Shows all taxable dividend and capital gain distributions paid to your mutual fund accounts. The dividends and capital gains shown on the form are taxable regardless of whether they are reinvested in additional fund shares or distributed in cash.

  • 1099-INT

    Form 1099-INT

    Used to report interest income and related expenses. It discloses all interest income paid to you by a financial institution or fund during the year. Form 1099-INT may also be used to disclose any federal income tax withheld (backup withholding) or specified private activity bond interest, if applicable. The IRS uses the information on this form to ensure you report the correct amount of interest income on your tax return.

  • 1099-B

    Form 1099-B

    Reports all proceeds from sales and exchange transactions for your non-money market mutual fund shares, such as stocks, as well as any federal income tax withheld. 

Important Dates for 2018

  • Required Minimum Distribution paperwork due Dec. 1, 2018

  • Roth Conversion Form due Dec. 1, 2018

  • Last day to establish Individual 401(k) accounts for 2018 is December 31, 2018

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IRA Contribution Limits

How much can you contribute to your Individual Retirement Account? Review changes that the IRS has made to the annual contribution limits and income thresholds for 2018.

Contibution Limits

Hot Topics

Disaster relief

Individuals living in areas affected by one of the major hurricanes or the massive wildfires in California could be eligible for a lengthier extension. The IRS considers the “affected” taxpayers to be those who reside in the covered disaster areas, those who have been working to provide relief or assistance in the disaster areas, or individuals who visited the affected area and were injured as a result of the disaster. The IRS has specific guidelines listed for individuals to determine whether they are entitled to more time.

IRS Guidelines
Changes to the ITIN Program

Your ITIN may expire before you file a tax return in 2018. All ITINs not used on a federal tax return at least once in the last three years will expire on December 31, 2017. Additionally, all ITINs issued before 2013 with middle digits of 70, 71, 72 or 80 are expiring. If you need to file a tax return in 2018, the IRS recommends you renew your ITIN.

Visit the IRS website for more information on how to renew your ITIN.

ITIN Program
Is the IRS calling?

Many taxpayers have encountered individuals impersonating IRS officials – in person, over the telephone and via email. Don’t get scammed. The IRS wants you to understand how and when they contact taxpayers and help you determine whether a contact you may have received is truly from an IRS employee.

Most contact from the IRS is initiated through regular mail delivered by the United States Postal Service.

How to know

Tax Season FAQs

Q. What are my options for receiving tax forms?

A. At this time, all tax forms are mailed to account owners.

Q. What are the rules regarding rolling over my IRA to another retirement plan?

A. A rollover may occur between a qualified plan and an IRA. It is important for retirement plan owners considering a rollover to take extra precautions to ensure the transaction is completed promptly, as all transactions are reported to the IRS. In some cases, rollovers are not permitted, including the following:

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  • IRA owners generally may not complete more than one IRA-to-IRA rollover within a 12-month period regardless of how many IRAs they own;
  • Rollovers cannot be made from a SIMPLE IRA plan to a Traditional IRA during the first two years of a SIMPLE IRA’s plan participation;
  • After age 70½, IRA or qualified plan rollover amounts that represent a taxpayer’s required minimum distribution for that year cannot be rolled over; and,
  • Rollovers from a Roth IRA cannot be made to a Traditional IRA or qualified plan.
     

Also, while rollovers are reported to the IRS as distributions, a special code on the distribution report indicates the funds were transferred in a direct rollover to an IRA or employer plan and are, therefore, not taxable. We encourage IRA owners to consult with a tax advisor before initiating any transactions.

Q. What if a distribution happens outside my IRA?

A. If the proceeds from your investment are not processed through and deposited back into your MTC IRA, then any funds sent outside of the IRA will be reported as a distribution on a 1099-R. This may result in taxation and penalties.

Q. How do I complete a conversion or recharacterization for my IRA?

To convert your traditional IRA into a ROTH IRA, you must complete the ROTH IRA Conversion Certification form. If you do not already have a ROTH IRA at Millennium Trust you will need to open one. A conversion to a Roth IRA results in ordinary income taxation on the amount converted from the traditional IRA. The deadline to complete a conversion is December 31st of each year.

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To recharacterize your Roth Contribution or Conversion back into a traditional IRA you must complete the IRA Recharacterization Request form. Please note that Roth Conversions made in 2017 may be recharacterized as a contribution to a traditional IRA as long as the recharacterization is completed by October 15, 2018. Any conversions to a ROTH IRA made on or after January 1, 2018 cannot be recharacterized. For more information, please see the IRS publication 590.

Consult your tax advisor to determine if a conversion or recharacterization is right for you.

More questions? View our FAQs.

 

Keep in mind that the information provided in this Tax Center is neither tax nor legal advice. You should speak to your tax professional for specific information regarding your tax situation.