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Welcome to our Tax Center

Have Tax Questions?

Our Tax Center provides information and resources to help you prepare for the 2021 tax season. You can find answers to questions regarding your Millennium Trust accounts, as well as access educational tools explaining the Internal Revenue Service (IRS) forms and statements you will receive.

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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

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.

Note:  The IRS has extended the mailing of Form 5498 to June 30, 2021. 

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.

    Note:  The IRS has extended the mailing of Form 5498 to June 30, 2021. 

  • 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 2021

Access the chart below to see what specific documentation you may need to complete and actions to take in order to successfully meet IRS deadlines for 2021. Visit irs.gov for the tax latest information.

Note:The IRS has extended the federal income tax filing due date for individuals for the 2020 tax year from April 15, 2021, to May 17, 2021.

View 2021 Dates

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 2021.

Contribution Limits

Hot Topics

Tax Relief for Severe Storms Victims

IRS announces tax relief for Alabama, Kentucky, Louisiana, Oklahoma, and Texas severe storm victims.

The disaster declaration issued by the Federal Emergency Management Agency permits the IRS to postpone certain tax-filing and tax-payment deadlines for taxpayers who reside or have a business in the disaster area are extended. This includes 2020 business returns, normally due on March 15 and individual and business returns normally due on April 15. It also includes the special March 1 filing and payment deadline for farmers and fishers who forgo making estimated tax payments.

Tax filing deadline and IRA contributions for 2020 for Louisiana, Texas, and Oklahoma has been extended until June 15. The deadline for Kentucky is extended to June 30, 2021 and the Alabama deadline is extended to August 2, 2021.

IRS Tax Relief
Is the IRS calling?

The IRS wants you to understand how and when we contact taxpayers and help you determine whether a contact you may have received is truly from an IRS employee. The IRS initiates most contacts through regular mail delivered by the United States Postal Service.

However, there are special circumstances in which the IRS will call or come to a home or business, such as when a taxpayer has an overdue tax bill, to secure a delinquent tax return or a delinquent employment tax payment, or to tour a business as part of an audit or during criminal investigations.

How to know
Private Debt Collection

The IRS began a new private collection program of certain overdue federal tax debts selecting four contractors to implement it. The groups are: CBE Group of Cedar Falls, Iowa; Conserve of Fairport, N.Y.; Performant of Livermore, Calif.; and Pioneer of Horseheads, N.Y. The taxpayer’s account will only be assigned to one of these agencies, never to all four. No other private group is authorized to represent them.

The IRS will always notify a taxpayer before transferring their account to a private collection agency.

Private Collection Program

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 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. 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. 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.

 

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.