Frequently Asked Questions (FAQs) | Schwab - Millennium Trust Company
Frequently Asked Questions

Quick answers to your most immediate questions

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  • Will I receive a tax form 1099-R?

    The 1099-R is used to report rollovers and/or distributions from qualified retirement accounts and IRAs. You will receive a 1099-R during the calendar year if:

    • Your qualified retirement plan rolled over to an IRA for you at Millennium Trust.
    • You took a taxable distribution or executed a direct rollover to a current employer's qualified plan from your IRA at Millennium Trust.

    All 1099-Rs will be mailed by January 31 of the year following the above event(s).

  • Will I receive a tax form 5498?

    The 5498 is used to report contributions, including rollovers, made to an IRA for the current tax year. You will receive a 5498 if:

    • Your qualified retirement plan was automatically rolled over to an IRA for you at Millennium Trust and/or you made any other current year contributions.

    It also is used to report the fair market value (FMV) of your IRA as of December 31 of the reporting year. The 5498 will be mailed by May 31 in the year following the above event(s).

  • What is a self-directed IRA?

    A self-directed IRA is just like other Individual Retirement Accounts in that it provides a way for individuals to save for retirement in a tax-deferred account. The term "self-directed" became popular because the account owner has the freedom to invest in a wide range of investment options, including both alternative and traditional assets.

  • What is an alternative investment?

    An alternative investment is any asset that is not publicly traded. Examples of alternative investments include: hedge funds, private equity or debt, real estate and precious metals, among others.

  • What do you do as custodian?

    At its most basic, we hold assets in an account on behalf of the owner. The account owner (or their authorized agent) is responsible for directing all investment/account activity. At their direction, we purchase/sell assets, as well as transfer or distribute assets from the account. As part of our role as custodian we also provide required account statements and tax reporting. For additional information, please refer to the Retirement Income Trust Association (RITA) document, Understanding the Role of a Directed IRA Custodian.