A 1099-R form is specifically related to distributions from retirement accounts and is essential for reporting your income accurately to the Internal Revenue Service (IRS). So, when should you expect to receive your 1099-R form?
The distributions from various retirement accounts that will be reported on a 1099-R form can include:
- Traditional IRAs
- Roth IRAs
It includes important information about the amount of money distributed from these accounts during the tax year and any applicable taxes that were withheld. The form is essential for both the taxpayer and the IRS to ensure the proper amount of income tax is paid on the distributions.
Financial institutions, retirement plan administrators, or other entities responsible for distributing retirement funds must send out 1099-R forms directly to account holders by January 31. This is the deadline set by the IRS, and it requires they meet this date to ensure that the taxpayers have enough time to prepare and file their tax returns.
You can expect to receive your 1099-R in one of several ways.
This is the most common form of distribution. Financial institutions will mail the form to your last known address.
Some institutions offer the option to receive your 1099-R form electronically. In this case, you will typically receive an email notification with instructions on accessing and downloading your form through a secure online portal.
Online Account Access
If you manage your retirement accounts online, you might be able to login and access your 1099-R form directly from your account dashboard.
If you haven’t received your 1099-R by early February, you should contact the institution to ask about the status. Sometimes, delays occur due to mailing or distribution systems.
The IRS requires taxpayers to file their federal income tax returns by the deadline, which is typically April 15. If you haven’t received your 1099-R by this date, you should proceed with your tax return using the information available to you, and promptly contact the financial institution to request a copy of your form. It is important to keep records of your own transactions and any correspondence in case the IRS has questions about your return.
If you receive your 1099-R form and discover errors, like incorrect distribution amounts or tax withholding, contact the institution promptly to request a corrected form. Accurate reporting is crucial to avoid potential issues with the IRS.
This material is for general information and educational purposes only. Information is based on data gathered from what we believe are reliable sources. It is not guaranteed as to accuracy, does not purport to be complete and is not intended to be used as a primary basis for investment decisions. It should also not be construed as advice meeting the particular investment needs of any investor.