Tax Dates

2019 Tax Documents & Mailing Dates

Your 2019 Form 1099-R IRA’s, Roth IRA’s, etc. have already been sent.

Your 2019 Form 1099 (non-retirement accounts) should be available by February 28th.

If you have elected to receive tax documents electronically, you’ll receive an email notification as soon as they are available for download. Mailed documents should arrive 3-5 days after they’re posted online.

Can I get my 1099 sooner?

Mutual funds and other regulated investment companies often reclassify or provide tax information after January 31, so custodians typically wait until after January 31 to prepare and send 1099s to clients.

This delay is common and helps reduce the need to send corrected 1099s to clients. Late reporting typically includes Foreign Tax Paid on a fund’s foreign source of income, or the reclassification of Ordinary Dividends to Qualified Dividends or Return of Capital.

While custodians do everything to avoid sending revised 1099s, please note that revisions are possible and it’s suggested that you wait until mid-March or early April to prepare your tax returns.

If you have any questions or need assistance in locating your tax documents, don’t hesitate to reach out to us.

SECURE Act

The Setting Every Community Up for Retirement Enhancement (SECURE) Act was signed into law on December 20, 2019, and took effect on January 1, 2020. It represents the most significant retirement plan legislation in more than a decade and impacts almost every retirement plan. This is not a complete list of the change, there are many exceptions and provisions to many of the rules coming forth which will be reviewed on a per client basis and if it has an impact, will be discussed on a one on one basis.

• Required Minimum Distribution (RMD) age was increased from 70 ½ to 72. Investors who turned 70 ½ in 2019 must still take RMDs in 2019, 2020 and beyond.
• For inherited IRAs, also known as Stretch IRAs, the stretch just got shorter. Heirs are now required to liquidate the full balance of accounts within 10 years, unless the beneficiary is a spouse, a minor child of the decedent, a disabled individual, or a person less than 10 years younger than the decedent.
• Permits penalty-free early withdrawal (before age 59 ½) for childbirth or adoption expenses of up to $5,000. This distribution is subject to income taxes but not the 10% early withdrawal penalty.
• While not part of the SECURE Act, beginning 2021, the IRS is changing its life expectancy table for RMDs, this will reduce the required amount to be distributed each year.
  • For example, currently an 80-year-old using the standard table would have to withdraw 5.35% of their IRA, this will reduce to 4.95%. At age 90, it will go from 8.77% to 8.20%. Not a huge change, but a good one!

Change to 529 Education Plan

• Allows 529 funds to be used for registered apprenticeships and up to a lifetime $10,000 of qualified student loan repayments.