Tax Season 2023: What are Forms 1099-R and 5498?
Tax season is officially in full swing. Since the traditional filing date of April 15 falls on a Saturday in 2023, and because the following Monday is a holiday (Emancipation Day) in Washington, D.C., the federal tax filing deadline this year is April 18, 2023. Typically taxpayers in Massachusetts and Maine where Patriot’s Day is celebrated, get a mini extension, but Patriot’s Day also occurs on Emancipation Day in 2023, so they will face the same IRS deadline as other U.S. taxpayers.
Which tax forms you can expect from us and when
The two primary tax forms you may receive from Millennium Trust are IRS Form 1099-R and IRS Form 5498. Have questions about these forms? Here are a few things you should know about why you are receiving them.
Why would I receive Form 1099-R?
Form 1099-R is used to report rollovers and/or distributions from qualified retirement accounts and IRAs. You will receive a 1099-R this year if:
- Your qualified retirement plan (like a 401(k) or 403(b)) rolled over to an IRA at Millennium Trust.
- You executed a direct rollover to a current employer's qualified retirement plan from your IRA at Millennium Trust.
- You took a taxable distribution, including your Required Minimum Distribution (RMD). Individuals who reach age 72 in 2022 are required to take an RMD by April 1, 2023, and their second RMD by December 31, 2023. The “by year-end” due date applies to all future withdrawals as well. For more insight into this, contact your tax professional.
All 1099-Rs are generally mailed by January 31. This video further explains IRS Form 1099-R.
Why would I receive Form 5498?
Contributions, including rollovers, made to an IRA for the current tax year are reported by your financial institution to the IRS on Form 5498. This includes contribution amounts to a SEP IRA, Roth IRA, SIMPLE IRA or traditional IRA.
- You will receive a copy of the 5498 if your qualified retirement plan automatically rolled over to an IRA for you at Millennium Trust and/or you made any other contributions in 2022.
- This form may also be used to report the fair market value (FMV) of your IRA each year as of December 31.
- Form 5498 is for informational purposes only. You do not need it for tax filing.
You may receive this form after you’ve filed. And that’s okay — no need to hold up your tax return — again, it is just for your records.
Typically, Form 5498 is mailed by May 31, after most people have filed because IRA contributions can be made up to the tax due date for the prior year. Also, worth noting is that when your money automatically rolled over to Millennium Trust it was a nontaxable event. The 5498 that we send is used to report to the IRS that your money moved directly from your former plan into an IRA. Making any allowable contributions to your IRA is also a nontaxable event.
View this video for more information about Form 5498.
For more information to help you manage your taxes each year, visit our Tax Center, which includes helpful resources, like videos, IRS tax forms, important tax dates, FAQs and more.
The material in this Blog is presented for informational purposes only. The information presented is not investment, legal, tax or compliance advice. Millennium Trust Company performs the duties of a directed custodian, and as such does not offer or sell investments or provide investment, legal, or tax advice.