2023 Tax Form FAQ

When will my tax forms be available?

• Most, but not all tax forms are issued by January 31st. This includes tax forms for most IRAs and tax forms for annuities and life insurance including Thrivent and third-party providers.
• Tax forms for taxable brokerage accounts (often referred to as non-qualified or brokerage or non-IRA brokerage accounts) take longer to aggregate. Tax forms for taxable brokerage accounts begin to issue in late January but might take until mid-March to issue. Fidelity will release these tax forms in waves with the first wave coming at the end of January. The next waves occur in mid-February, then late-February, and finally mid-March.

 

How can I access my tax forms online?

• Fidelity Tax Form Availability & Instructions
• Thrivent Annuity & Life Insurance Tax Form Availability & Instructions

 

Why am I receiving multiple tax forms this year?

• If you opened a new account in 2023, you will likely have multiple tax forms, one from each provider, for each account.
• Only if distributions were taken from your IRAs while the funds were at each provider will you receive a 1099-R tax form from that provider. You may still receive a 5498 tax form even if no distributions were taken while at that provider.

 

Why are my tax forms not available by Jan. 31st / Why is it taking so long for my tax forms to be ready?

• As mandated under the Emergency Economic Stabilization Act of 2008, the IRS changed the deadline for mailing tax forms to Feb. 15. In an effort to reduce the number of corrected tax forms a member may receive, Fidelity requests an extension from the IRS that allows for mailing 1099 tax statements beyond the mid-February date for accounts holding certain mutual funds or certain complex securities.
• Most tax forms are available by Jan. 31st, the notable exception being consolidated 1099s for taxable brokerage accounts (often referred to as “non-qualified” or “brokerage” or “non-IRA brokerage” accounts.)
• Each fund held in your taxable brokerage account independently reports data to Fidelity. Only once all funds held have reported their data can Fidelity aggregate that data into your consolidated 1099 tax form.

 

What are the common types of tax forms?

• 1099-R
  • This tax form reports income from your IRAs (R for Retirement.)
• 5498
  • This tax form reports contributions made to IRAs including rollovers
  • It also reports some informational only things like required minimum distributions and fair market value.
• Consolidated 1099
  • This tax form reports various forms of income, like dividends, interest, and capital gains for taxable brokerage accounts.
  • Consolidated refers to the various components included in this report. Those being:
    • 1099-Div for Dividend income
    • 1099-Int for Interest income
    • 1099-B for Capital Gains

 

What generates tax forms?

• Generally, a taxable or reportable transaction will generate a tax form. So, if no distribution was taken from an IRA, no 1099-R will be generated.
• For IRAs that could be:
  • IRA Distribution
    • Note: This would occur for Qualified Charitable Distributions (QCDs) as well. See specific FAQ below for more.
  • IRA Rollovers
    • Though this is generally not taxable, it is reportable. A 1099-R showing the distribution can be offset by a 5498 showing the rollover deposit.
  • For taxable brokerage accounts that could be:
    • Dividend income
    • Interest income
    • Capital Gains
    • Note: Generally, all taxable (non-IRA) brokerage accounts will receive a consolidated 1099 tax form.

 

I sent funds directly from my IRA to charity or my church (referred to as a qualified charitable distribution or QCD,) why am I receiving a tax form?

• Even if funds were given directly from your IRA to charity or your church, you should still expect to receive a 1099-R tax form.
• Providers cannot and do not verify that the third-party recipient of the funds are a qualified charitable organization eligible for qualified charitable distributions. Therefore, they report the income as taxable. Investors should work with their tax professional and use receipts issued by the receiving organization as proof of the charitable contribution.

 

I redeposited IRA distributions back into my IRA (referred to as a 60-day rollover or indirect rollover) in 2023. What tax forms can I expect?

• Even if the funds were deposited, the initial distribution still occurred. Therefore, you will still receive a 1099-R tax form showing the distribution. You should also receive a 5498 tax form showing the indirect rollover.
• We recommend working with your tax professional for proper reporting.

 

 

For more information, please contact any of the professionals at Cedar Cove Wealth Partners.

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