Tax Center | Custodian - Millennium Trust Company

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Tax Center

Have Tax Questions?

You’ve come to the right place for resources to help you get ready for the 2022-2023 tax season, including information about your Millennium Trust accounts and educational tools explaining the Internal Revenue Service (IRS) forms and deadlines.

Coming To Your Mailbox Soon

1099-R and RMD Notices

Mailed by Jan. 31, 2023

1099-INT AND 1099-DIV FORMS

Mailed by February 15, 2023

Year-End/4th Quarter statements

Mailed by Jan. 31, 2023 and available on the MTC Investment Platform

What Is Form 1099-R?

This video explains IRS Form 1099-R.

What Is Form 5498?

This video explains IRS Form 5498.

IRS Tax Forms Explained

Not sure what the difference is between a 1099-R and 1099-B? View the tabs below so you are aware of the tax forms that Millennium Trust sends to both you and the IRS each year.

It’s important to understand the forms you receive because the IRS uses the information to ensure you report the correct information on your tax return.

Form 5498

You’ll receive Form 5498 if you made a contribution to your IRA in the previous tax year. 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, you’ll receive an updated Form 5498.

Form 1099-R

You’ll be sent Form 1099-R if you receive a distribution from 1) your former employer’s retirement account, 2) a Millennium Trust IRA or 3) another retirement plan. This form 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

Form 1099-DIV shows any dividends and distributions from your investments, which are taxable regardless of whether they are reinvested in additional fund shares or distributed in cash.

Form 1099-INT

Form 1099-INT reports interest income and related expenses paid to you by a financial institution or fund during the year. This form 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

Form 1099-B reports all proceeds from sales and exchange transactions for your non-money market mutual fund shares, ETFs and stocks, as well as any federal income tax withheld.

  • 5498

    Form 5498

    You’ll receive Form 5498 if you made a contribution to your IRA in the previous tax year. 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, you’ll receive an updated Form 5498.

  • 1099-R

    Form 1099-R

    You’ll be sent Form 1099-R if you receive a distribution from 1) your former employer’s retirement account, 2) a Millennium Trust IRA or 3) another retirement plan. This form 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

    Form 1099-DIV shows any dividends and distributions from your investments, which are taxable regardless of whether they are reinvested in additional fund shares or distributed in cash.

  • 1099-INT

    Form 1099-INT

    Form 1099-INT reports interest income and related expenses paid to you by a financial institution or fund during the year. This form 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

    Form 1099-B reports all proceeds from sales and exchange transactions for your non-money market mutual fund shares, ETFs and stocks, as well as any federal income tax withheld.

Important Dates For 2023

View the forms below to see important dates and deadlines and what specific documentation you may need to complete and actions to take to successfully meet IRS deadlines for 2023. Visit irs.gov for the tax latest information.

View 2023 Dates

Understand IRA Contribution Limits

How much can you contribute to your IRA? Review IRS changes to the annual contribution limits and income thresholds for 2022 and 2023 to make the most of tax advantages.

Contribution Limits

Tap Into Resources Straight From the IRS

Plan Ahead for 2023

Taxpayers face issues due to critical tax law changes from 2021 and ongoing challenges related to the pandemic. The IRS continues to share updated information for people planning for the 2022 return they will file next year, as well as anyone who has previous tax returns awaiting processing by the IRS.

View IRS Tax Updates
Be Aware of Possible Tax Scams

Thousands of people have lost millions of dollars and their personal information to tax scams. Scammers use regular mail, telephone, or email to scam individuals, businesses, payroll and tax professionals. Recognize the telltale signs of a scam. See also: How to know if it’s really the IRS calling or knocking on your door.

Learn More
Get Tips for Tax Season

The IRS provides many tips and resources to help you during tax season. View the IRS’ Tax Tips to review your Taxpayer Bill of Rights, get the facts about how the IRS communicates with taxpayers, learn about tax benefits for charitable giving and access other useful information.

Get Tax Tips

Tax Season FAQs

Q. Will I receive a tax form 1099-R?

A. 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).

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 Millennium 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. 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 72 (70½ if born before June 30, 1949), 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. How do I complete a conversion or recharacterization for my IRA?

A. 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.

Q. Can I make additional contributions?

A. Yes, if you are eligible to fund an IRA, then you may make contributions to your Millennium Trust IRA up to the IRS's annual contribution limit. You may also transfer funds from another IRA or an employer sponsored plan.

Q. Can I take a distribution?

A. Of course. It’s your money and you’re in charge. You have several options to choose from — keep your account at Millennium Trust, move your money to another eligible plan or withdraw your money. Whatever you choose, we’re here to help. Please know that some distributions are subject to taxes and fees, so you may want to consult your tax advisor before requesting a distribution.

More questions? View our FAQs.

 

Other Resources

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.